In a firm that uses special journals, the purchase of merchandise for $2,800, payable in 30 days, plus a freight charge of $140 is recorded in the:
A)cash receipts journal.
B)general journal.
C)purchases journal.
D)cash payments journal.

Question

Quizplus · Accepted Answer

The purchase of merchandise is a transaction that would be recorded in the purchases journal, which is a special journal used to record purchases of inventory on account. The freight charge would be included in the total amount of the purchase, which in this case is $2,940 ($2,800 + $140). The fact that the payment is due in 30 days does not affect the journal entry, as this information is typically tracked in a separate accounts payable ledger.

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