An automobile company purchases spark plugs, on account, for the production of its vehicles. When using a manual accounting information system, where should the company record this transaction?
A)purchases journal
B)general journal
C)cash payments journal
D)sales journal

Question

Quizplus · Accepted Answer

The purchase of spark plugs is a purchase transaction and should be recorded in the purchases journal, which is a subsidiary ledger used to record all credit purchases made on account. The general journal is used for non-routine transactions and adjusting entries, while the cash payments journal is used for recording cash payments made by the company. The sales journal is used to record credit sales made by the company.

An Automobile Company Purchases Spark Plugs, on Account, for the Production