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

Question

Quizplus · Accepted Answer

The purchases journal is used to record all credit purchases of a company. As the spark plugs are purchased on account (credit), the transaction will be recorded in the purchases journal. The other options, such as general journal, cash payments journal, and sales journal, do not specifically deal with credit purchases, and hence are not appropriate for recording this transaction.

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