QUESTION Dexter Company maintains four special journals and a general journal to

ID: 2571990 • Letter: Q

Question

QUESTION Dexter Company maintains four special journals and a general journal to record its transactions. Indicate the appropriate journal for recording the transactions described Mr. Dexter invested cash in the business General Journal Made an adfusting entry for store supplies used during the period. 2 Cash Payments Joumal I Sold merchandise to a customer on account. 3. Purchases Jounal 4. Cash Receipts Journal 5 Sales Jounal - - ' Purchased a 2-year fire insurance policy for cash. Purchased merchandise on account. QUESTION 7

Explanation / Answer

Explanation

Cash Receipts Journal

Mr.Dexter Invested Cash in the Business

Owner Introduced in form of Cash, Cash is coming

General Journal

Made an adjusting entry for store supplies used during the Period

Consumption Entry passed ,hence it is General Journal, it is internal adjustment

Sales Journal

Sold Merchandise to a Customer on Account

Made sales on account , no cash inflow only sales account affected

Cash Payments Journal

Purchased a 2-Year fire insurance policy for cash

Bought insurance for cash , there is outflow

Purchases Journal

Purchased Merchandise on Account

Made purchases on account , no cash outflow only purchases account affected