Where would the purchase of office furniture on credit be recorded?

The purchase of office furniture on credit would be recorded in the Purchases account because this account specifically tracks the acquisition of goods and services for the business, regardless of whether payment is made immediately or is deferred. This practice is crucial for maintaining accurate financial records, as it reflects the company’s liabilities and assets.

When furniture is purchased on credit, it typically increases the Purchases amount, representing an expense incurred by the business. Additionally, since the payment is made on credit, it will also increase liabilities on the balance sheet until the payment is settled.

The other options, while related to accounting practices, do not specifically apply to the purchase of office furniture. Cash Receipts would record cash coming into the business, Sales would deal with revenue generated from selling goods or services, and General generally refers to a broad classification of transactions not specifically tied to purchases. Thus, Purchases is the most relevant and accurate account for recording this transaction.