What is purchases journal? It is a recording of purchases of merchandise on credit only in the purchases journal. In this instance, the term merchandise refers to the goods acquired for resale to customers. Merchandise purchased for cash is recorded in the cash disbursements journal. Each entry in the purchases journal reflects a credit to a creditor’s account and a debit to purchase. Total purchases for the month are recorded as a debit to purchases and a credit to accounts payable.
Completion of this journal entry will be noted in the sales journal by placing account numbers for the two accounts involved below the total amount of purchases of the month. For bookkeeping matters, we can be reached at 6817 4500 or email@example.com.