In a firm that uses special journals, the purchase of merchandise with terms of 2/10, n/30 is recorded in the:
A)purchases journal.
B)cash receipts journal.
C)cash payments journal.
D)general journal.

Question

Quizplus · Accepted Answer

The purchase of merchandise with terms of 2/10, n/30 is a credit transaction, and the purchases journal is used to record all credit purchases of merchandise. The cash receipts journal is used to record cash received, the cash payments journal is used to record cash payments, and the general journal is used for all other transactions not recorded in the special journals.

In a Firm That Uses Special Journals, the Purchase of Merchandise