Journal Fundamentals
The Purchases Journal is classified as this type of journal, designed for specific, repetitive transactions
What is a special journal?
This is the specific source document used to trigger an entry into the Purchases Journal
What is a Purchase Invoice?
If you purchase inventory that you intend to sell to customers, you record the amount in this specific Debit column
What is the Purchases Debit column?
This column in the journal is used to write the name of the business from whom the purchase was made
What is "Creditor's Account Credited"?
How long was the longest recorded tennis match played for?
11 hours
These are two of the three main benefits of using a special journal like the Purchases Journal
What are reducing time, errors, and repetition?
This is the party responsible for sending the invoice to the buyer
What is the vendor?
If you purchase a new desk for the office on account, you must record the name of the account in this column instead of using the Purchases column
What is the "Account Debited" (under the General section)?
In the transaction for Pro Runner Warehouse, this was the total amount credited to Accounts Payable
What is $2,300?
In Major League Baseball, whose uniform regulations require black underwear?
Umpire
This is the only type of transaction that should be recorded in a Purchases Journal
What are credit purchases of merchandise (for resale)?
A purchase invoice must show these five key pieces of information
What are Vendor Name, Date, Items Purchased, Total Amount Owed, and Credit Terms?
This is the reason why "Store Equipment" is recorded in the General columns rather than the Purchases colum
What is because it is not merchandise intended for resale?
When journalizing a purchase of store equipment, you must use these two columns in the "General" section
What are Account Debited and Debit?
Which country invented the sport of curling, where players slide stones on ice and sweep like their lives depend on it?
Scotland
If a business buys merchandise using cash instead of credit, it would NOT be recorded in this journal for this reason
What is because the journal is used ONLY for credit purchases?
In the credit terms "2/10, n/30," this is the number of days the buyer has to pay the full amount without a discoun
What is 30 days?
Regardless of whether you buy merchandise or office equipment on account, this column will always be used to record the increase in what you owe
What is the Accounts Payable Credit column?
This is the date recorded for the transaction involving Champion Store Supply
What is December 15?
Which sport requires competitors to chase a greased-up pig?
Pig wrestling
After transactions are recorded in the Purchases Journal, the totals are eventually moved here
What is the General Ledger?
This specific number from the source document is recorded in the second column of the journal to provide an audit trail
Invoice Number
True or False: Every transaction in the Purchases Journal involves a credit to Accounts Payable
True
If a purchase invoice is received but the items are for personal use by the owner rather than the business, why would it likely stay out of this specific journal?
What is because the journal is for business purchases of merchandise or business assets on account?
Which student athlete broke three world records with an injured back in May 1935?
Jesse Owens