A company which uses special journals should record a transaction involving the purchase of merchandise for cash in a
A) single-column purchases journal.
B) multiple-column purchases journal.
C) cash payments journal.
D) general journal.

Question

Quizplus · Accepted Answer

When a company uses special journals, it separates transactions by type. The cash payments journal is used to record all transactions involving the payment of cash, including the purchase of merchandise for cash. The purchases journal is used for purchases made on credit, not for cash transactions. The general journal is only used for special or unusual transactions that do not fit into any of the other journals. Therefore, the best choice for recording the purchase of merchandise for cash in this scenario would be the cash payments journal.

A Company Which Uses Special Journals Should Record a Transaction