QUESTION 33 Which of the following is true of a purchases journal? A purchases j
ID: 2588388 • Letter: Q
Question
QUESTION 33 Which of the following is true of a purchases journal? A purchases journal is not used for a perpetual inventory system. Cash purchases are recorded in the purchases journal. O In a purchase journal, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR for a periodic inventory system. O In a purchases journal, the Other Accounts DR columns are used for purchases on account of items other than merchandise inventory and QUESTION 34 Which of the following is true of a sales journal? It is a special journal used to record credit sales. It is a special journal used to record all the cash sales. O It is used to record the sales of capital assets, such as buildings It is a general journal that is used to record the adjustments in revenue account.Explanation / Answer
33) Purchase journal is not used for perpetual inventory system(true)
Purchase journal is used to record credit purchases, Cash purchases are recorded in payment journal. Purchase journal is not used for perpetual inventory system. Under perpetual inventory system transactions are updated at every transaction. Under periodic inventory system all purchases are recorded in purchase account. Purchase journal is not used for other items purchase other than mercendise.For example office supplies are not recorded in purchase journal.
34) It is a special journal used to record credit sales (true)
Sales Journal is used to record all credit mercendise items and inventory sold. Cash sales are not recorded in sales journal. It is not used to record sales of capital assets and adjustment in revenue account.