If a company purchases merchandise for cash the transaction should be recorded in the
A) purchases journal.
B) general journal.
C) cash payments journal.
D) sales journal.

Question

Quizplus · Accepted Answer

When a company purchases merchandise for cash, the transaction should be recorded in the cash payments journal, as it involves a cash outflow. The purchases journal and sales journal are used for credit transactions, while the general journal is used for adjusting and correcting entries that cannot be recorded in other journals.

If a Company Purchases Merchandise for Cash the Transaction Should