When posting column totals in the purchases journal, a credit should be posted to
A) Merchandise Inventory
B) Accounts Payable
C) Sales Returns and Allowances
D) Cash

Question

Quizplus · Accepted Answer

The purchases journal is used to record purchases made on account (credit). Therefore, the credit should be posted to Accounts Payable, which represents the amount owed to suppliers for the purchases made. The other options are not relevant for posting column totals in the purchases journal.

When Posting Column Totals in the Purchases Journal, a Credit