3) When recording in a purchases journal with a periodic inventory system, the Merchandise Inventory DR column would be replaced with a column titled Cost of Goods Sold DR.
4) Credit purchases are recorded in the purchases journal.
5) The Other Accounts DR columns of a purchases journal are used for recording merchandise inventory and office supplies.
6) The cash payments journal is a special journal used to record cash payments by only currency and not by check.
7) Entries from the purchases journal are posted monthly to the accounts payable subsidiary ledger and daily to the general ledger.
8) Posting from the cash payments journal is similar to posting from the cash receipts journal.
9) All transactions are recorded in either one of the special journals or in the general journal, but not both.
10) Which of the following is not included in the purchases journal?
A) purchases of Merchandise Inventory for cash
B) purchase of Merchandise Inventory on account
C) purchase of Office Supplies on credit
D) purchase of Capital Assets on account
11) The purchases journal is a special journal used to record:
A) cash receipts, interest rate payments, and purchases.
B) credit sales of assets that occur infrequently such as buildings, property, and equipment.
C) credit sales.
D) merchandise inventory, office supplies, and other assets purchased on account.
12) Which of the following is a column of a purchases journal?
A) Cost of Goods Sold CR
B) Accounts Payable CR
C) Sales Revenue DR
D) Interest Revenue CR