Answered

Find the best solutions to your problems with the help of IDNLearn.com's expert users. Join our knowledgeable community and get detailed, reliable answers to all your questions.

Select the correct answer.
Kruger Trading Inc. buys goods on credit. In which two accounts will the company post this transaction after entering it into the journal?
OA. Goods and Cash
ОВ.
Goods and Creditors
Ос. .
Purchases and Creditors
OD
Purchases and Cash

Sagot :

Samawatiidn

Answer:

с. Purchases and Creditors

Explanation:

A goods account is hardly created in the general ledger. Accountants and bookkeepers use the purchases account to record goods bought by the company.  

When a business makes purchases, it can either pay cash or in credit.  Cash payments are recorded in the cash account. They reduce cash held by the business.

Credit purchases increase creditors and are recorded in the creditor's account.

We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Discover the answers you need at IDNLearn.com. Thanks for visiting, and come back soon for more valuable insights.