Purchases made on credit should be recorded in which journal?

Purchases made on credit should be recorded in the Purchases journal because this journal specifically tracks all transactions related to inventory acquisitions or expenses incurred through credit purchases. The Purchases journal provides a systematic method to document each credit purchase, ensuring that the company maintains accurate records of its liabilities and inventory levels.

This is essential for financial reporting, as it allows for the verification of all credit purchases during the accounting period. It also aids in reconciling accounts payable, as entries in the Purchases journal serve as a reference for payments due to suppliers. Other journals, like the General, Cash Receipts, or Sales journals, do not serve the same purpose and may track different types of transactions, such as cash sales or income from operational activities, making them inappropriate for credit purchase entries.