Purchases of merchandise on credit should be recorded in
A) the purchases journal.
B) the general journal.
C) the cash payments journal.
D) the sales journal.

Question

Quizplus · Accepted Answer

Purchases of merchandise on credit are recorded in the purchases journal, which is a specialized journal used to record all credit purchases of merchandise, including a description of the goods purchased, the date of purchase, the name of the supplier, and the amount of the purchase. It is important to keep track of these purchases separately from cash purchases and other transactions, as they have different implications for the company's finances and financial statements. The general journal may be used for other types of transactions, but not specifically for credit purchases of merchandise. The cash payments journal is used to record cash payments, while the sales journal is used to record sales transactions.

Purchases of Merchandise on Credit Should Be Recorded in