Mocha Coffee Shop has asked the accountant to keep track of the purchases for beverage, food, and retail items. The accountant has implemented a purchases journal. Which of the following columns should be included in the new purchases journal?
A) Accounts Payable Cr., Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr.
B) Accounts Payable Dr., Other Accounts Dr., Beverage Supplies Cr., Food Supplies Cr., Retail Items Cr.
C) Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Dr., Cash Cr.
D) Beverage Supplies Dr., Food Supplies Dr., Retail Items Dr., Other Accounts Cr., Accounts Payable Dr.

Question

Quizplus · Accepted Answer

The correct choice is A because in a purchases journal, typically, purchases on account are recorded. Therefore, Accounts Payable should be credited when purchases are made on account. The items purchased such as Beverage Supplies, Food Supplies, and Retail Items should be debited, reflecting an increase in these assets. "Other Accounts Dr." allows for flexibility in recording transactions that don't fit the predefined categories.

Mocha Coffee Shop Has Asked the Accountant to Keep Track