Doughton Furniture Company purchased merchandise on credit from Furniture Supply for $8,000.Two days later Doughton returned $2,000 of the merchandise due to damage.When Doughton pays for the merchandise minus the return,it would record the payment in the:

Question

Quizplus · Accepted Answer

The payment for the merchandise minus the return would be recorded in the cash disbursements journal because it represents an outgoing cash transaction. The general journal is used for adjusting entries and other miscellaneous transactions, the cash receipts journal is used for incoming cash transactions, the purchases journal is used to record purchases on credit, and the accounts payable controlling account is a subsidiary ledger used to track amounts owed to vendors.

Doughton Furniture Company Purchased Merchandise on Credit from Furniture Supply