Which Journal is used to record a transaction involving a credit purchase of inventory?

Question

BlackTom AI · Accepted Answer

A purchases journal is used to record all credit purchases of inventory, so the correct choice is b. Purchases Journal.

1) Relevant knowledge points and concepts
- Double-entry bookkeeping: every transaction affects at least two accounts (debit and credit).
- Special (subsidiary) journals: used to record repetitive transactions to simplify posting. Key special journals include the Sales Journal (credit sales), Purchases Journal (credit purchases), Cash Receipts Journal (cash inflows), and Cash Payments Journal (cash outflows).
- For inventory acquired on credit, the typical accounts affected are Inventory (or Purchases) and Accounts Payable.

2) Step-by-step reasoning
- Identify the nature of the transaction: purchase of inventory and on credit (not paid in cash).
- Determine accounts impacted: Inventory (an asset) increases → debit Inventory; Liability Accounts Payable increases → credit Accounts Payable.
- Determine which special journal handles this combination: the Purchases Journal is specifically designed to record credit purchases of goods for resale (inventory).

3) Accounting entry (intermediate steps shown)
- Debit: Inventory (or Purchases) — increases the asset (or expense, depending on accounting system)
- Credit: Accounts Payable — records the obligation to pay the supplier
No cash is involved, so Cash journals are not used.

4) Why the correct answer is correct
- The Purchases Journal centralizes all credit purchases, making posting to Accounts Payable and Inventory efficient and consistent. It is the textbook location for recording inventory acquired on account.

5) Why the other options are incorrect
- a. Sales Journal: used only for credit sales (revenue transactions), not purchases.
- c. Cash Receipts Journal: used to record receipts of cash (collections), not credit purchases.
- d. Cash Payments Journal: used to record cash disbursements; a credit purchase involves no immediate cash outflow.

6) Conclusion
Therefore, the correct journal for a credit purchase of inventory is b. Purchases Journal, which matches the provided answer.

Which Journal is used to record a transaction involving a credit purchase of inventory?单项选择题

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