Which of the following statements is not correct?
A)Cash purchases of merchandise are not recorded in the purchases journal.
B)The Purchases account has a normal debit balance.
C)The invoice date and credit terms must be carefully recorded in the purchases journal because they determine when payment is due.
D)A credit purchase of equipment for use in the business would be recorded in the purchases journal.

Question

Quizplus · Accepted Answer

A credit purchase of equipment for use in the business would not be recorded in the purchases journal because the purchases journal is used to record the purchases of merchandise or inventory for resale purposes. Equipment would be recorded in a separate journal, such as the general journal or the fixed assets journal.

Which of the Following Statements Is Not Correct