Big Industries purchased products from Small Suppliers,paying $5 000 in cash and promising to pay the remaining $5 000 in 30 days.Assuming the use of special journals,this entry would be recorded by Big Industries in the:

Question

Quizplus · Accepted Answer

The purchase of goods from Small Suppliers will be recorded in the purchases journal as it is a credit purchase transaction. The payment of $5,000 in cash will be recorded in the cash payments journal. Therefore, this entry will be recorded in both the purchases journal and the cash payments journal.

Big Industries Purchased Products from Small Suppliers,paying $5 000 in Cash