Payment of merchandise purchased on account within the discount period is recorded in the cash payments journal.

Name: Payment of merchandise purchased on account within the discount period is recorded in the cash payments journal.
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When a company purchases merchandise on account and pays for it within the discount period, the transaction is recorded in the cash payments journal. This journal tracks all cash outflows, including payments made to suppliers that take advantage of early payment discounts.

Payment of Merchandise Purchased on Account Within the Discount Period