I am recording transactions for a company, in the instructions it was specified
ID: 2379831 • Letter: I
Question
I am recording transactions for a company, in the instructions it was specified that for purchases the business records when the business receives the goods, all items purchased are received on the same day as recorded except for purchase orders which are received at a later date.
Now my question is :
they told me that i received a purchase order from revamo coffee. Created a corresponding sale order to deliver 9 packages of plastic for 216 each, invoice # 204.
Do i have to record in a sales journal and not the cash receipts journal? or is there no recording whatsoever? PLEASE HELP
Explanation / Answer
When goods purchsed on credit, purchases account is debited, and accounts payable account is credited. This transaction is not recorded in sales or cash receipts transactions.
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