In which journal would the transaction "purchased merchandise for cash" be recorded?

Enhance your knowledge with our Principal Account Clerk Civil Service Test. Master key concepts with flashcards, and multiple-choice questions. Get exam-ready with detailed explanations!

The appropriate journal for recording the transaction "purchased merchandise for cash" is the cash payments journal. This is because a cash payment signifies that cash is being disbursed or spent. When merchandise is purchased, it typically involves immediate cash outflow, which is why it is categorized under cash payments.

The cash payments journal is specifically designed to track all transactions that involve cash going out of the business. By recording this transaction in the cash payments journal, it allows for easy tracking of expenditures and helps maintain accurate financial statements regarding cash management.

In contrast, the cash receipts journal is used for transactions where cash is received, the sales journal specifically records credit sales transactions rather than cash purchases, and the general journal serves as a catch-all for transactions that do not fit into other specific journals.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy