 In this presentation we will take a look at multiple choice questions related to special journals. First question. Purchase merchandise on account what journal is used? A. Cash disbursements journal. B. Sales journal. C. Cash receipts journal. D. Purchases journal. Or E. The general journal. Once again we will read through these, cross them out with the process of elimination in order to get closer to the correct answer. Purchase merchandise on account what journal is used? A. The cash disbursements journal. Here we purchased it on account and that's usually a term meaning we purchased it for accounts payable. So meaning we purchased merchandise so inventory would go up. This would be the journal entry which might be worth writing down whenever we can the journal entry. So inventory would go up and we say accounts payable would be the other side. So that's kind of the journal entry we're looking for. So I don't think it's any cash there so it can't be cash disbursements. B. Sales journal. A sales journal will typically be used when we make a sale and in this case we're purchasing something we'll sell it later. So I don't think it's going to be the sales journal. C. Says the cash receipts journal. Once again there's no cash involved here so we're not getting cash we're purchasing stuff. So I don't think that's it and D. Says the purchases journal. That's going to be when we purchased something and we did purchase merchandise. So that looks pretty good. I'll keep it for now. E. Says the general journal. That's going to be like the default journal if we can't find another place for us to put this information into the special journals. So let's read through it one more time we're left with D and E. Purchases journal and the general journal. Purchase merchandise on account. What journal is used either D. The purchase journal or E. The general journal. And we're going to say here that I do believe that it fits into the purchases journal area meaning inventory is going up with a debit and we will credit the accounts payable. So that's going to be a purchase so therefore we don't need the general journal. So final answer. Purchase merchandise on account. What journal is used D. Purchases journal. Next question. Makes payment for merchandise purchased on account. What journal is used. So A. Cash disbursements journal B. Sales journal C. Cash receipts journal D. Purchases journal or E. General journal. One more time we'll read through it see if we can cross some out with the process of elimination to get to that correct answer. Makes payment for merchandise purchased on account. What journal is used. So now we're making a payment. So it sound that if we write this out it's going to be cash is the payment that we're making with cash and we're paying payment on account. So the debit would go to accounts payable. So it might be useful to actually write these journal entries out even if they don't give us the the numbers here so that we can then look at these journals and say okay what are these journals make sense. It always helps to me to to write out the journal entry whenever possible. So A says the cash disbursements journal. We are dispersing cash so that could be it. We're dispersing it not buying anything but opt to pay off what we owed in the past. B says the sales journal. I don't think we're making a sale so that doesn't look like it. C says the cash receipts journal. We're not getting cash we're paying cash so I don't think that's going to be it. D says the purchases journal and we may have purchased something but we purchased it in the past now we're paying off the amount we owe for the purchase in the past that we made. So I don't think it's the purchases journal and E says the general journal that's the default journal if we can't fit it anywhere else. So let's read through it one more time and see if it's A or cash disbursements journal or general journal. Makes payment for merchandise purchased on account what journal is used either A cash disbursements journal or E general journal and I do think it's going to fit in the cash disbursements journal. We're making a cash payment and therefore anytime we make the cash payment the journal use would typically be the cash disbursements journal and therefore would not need the general journal to record this because it would fit in this cash disbursements special journal. One more time final answer makes payment for merchandise purchased on account what journal is used A cash disbursements journal. Next question makes sale on account what journal is used A cash disbursements journal B sales journal C cash receipts journal D purchases journal or E the general journal. Once again we'll read through it see if we can cross them out with the process of elimination makes sale on account what journal is used A cash disbursements journal and once again we could we could try to write the journal entry. So if we make a sale on account that the journal entry would typically that we're going to credit sales the revenue and we didn't get cash yet we got accounts receivable. Now we may also have costs of goods sold if we sold inventory if that's what we're selling and inventory going down. So we're looking for a place to put this information so A says cash disbursements journal now we made the sale on account and we didn't get cash and this is a disbursement we definitely didn't pay cash so it doesn't look like A. Say B says the sales journal and we did make a sale so B looks like it could be a possibility C says the cash receipts journal now we made a sale but we didn't get cash yet so it's not going to go in the cash receipts journal D says the purchases journal and we didn't purchase anything we made a sale so that doesn't look like it and E says the general journal the default journal if we can't fit this anywhere else let's leave that for now we're on B the answer either being B sales journal or E general journal once again we'll read through it makes sale on account what journal is used either B sales journal or E general journal and I do think of course this would fit into the sales journal the only thing we really have to be careful of in the sales journal is to make sure that if we made the sale for cash it would go in the cash receipts journal if we made the sale on account or got a receivable for it it would go into the sales journal so once again final answer is makes a sale on account what journal is used B sales journal