A purchase of merchandise on account is recorded in the cash payments journal.

Name: A purchase of merchandise on account is recorded in the cash payments journal.
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Question

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A purchase of merchandise on account means the buyer will pay for the merchandise at a later date. Therefore, it is not recorded in the cash payments journal, which is used to record payments made in cash. Instead, it would be recorded in the accounts payable subsidiary ledger and the general ledger.

A Purchase of Merchandise on Account Is Recorded in the Cash