Tangent Corporation makes a $1,200 purchase of merchandise inventory on account. This transaction will be recorded in the:
A)cash payments journal.
B)sales journal.
C)cash receipts journal.
D)purchases journal.

Question

Quizplus · Accepted Answer

The purchases journal is used to record purchases of merchandise on account, which is exactly what this transaction is. Therefore, the best choice is D.

Tangent Corporation Makes a $1,200 Purchase of Merchandise Inventory on Account