Question

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

Answer 1

с. Purchases and Creditors

Step-by-step 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.