Question

A purchase of merchandise for cash would be posted (A) individually to Purchases and individually to Accounts Payable. (B) individually to Purchases. (C) as part of a column total to Purchases. (D) as part of column totals to Purchases and Accounts Payable.

Answer 1

A purchase of merchandise for cash would be posted individually to Purchases.

Option B

Explanation:

Every day, the accounts receivable are filled with individual submissions in the sales newspaper, to keep customer balances on track. Customer account calculations are placed into the comparison column of a sales journal to signify that entries have also been posted (or check marks when customer data are actually kept in alphabet order).

Although companies develop special diaries for routine activities of other kinds, almost all marketing firms use special diaries for orders, deposits, cash receipts, and cash payments.