When a company uses special journals, the general journal is used to record selected transactions and events including:
A) Credit purchases.
B) Closing entries.
C) Sales on credit.
D) Credit sales.
E) Cash payments.

Question

Quizplus · Accepted Answer

The general journal is used to record closing entries, which are necessary to transfer balances from temporary accounts to the appropriate permanent account at the end of an accounting period.

However, special journals are used to record transactions that occur frequently, such as credit purchases, sales on credit, and credit sales. Cash payments may also be recorded in a cash disbursements journal, which is a type of special journal. Therefore, options A, C, D, and E are not recorded in the general journal when special journals are used.

When a Company Uses Special Journals, the General Journal Is