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

Question

Quizplus · Accepted Answer

A cash payment for the purchase of merchandise should be recorded in the cash payments journal, which is a special journal used to record all cash payments made by the company. The purchases journal, whether one or multi-column, is used to record credit purchases of merchandise. The general journal is used for transactions that do not fit into any of the specialized journals.

A Company Which Uses Special Journals Should Record a Transaction