**Educational Website Text: Journalizing Purchases for Gomez Company**Gomez Company employs a comprehensive accounting system using various specialized journals: sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Below is an example of transactions that need to be recorded in the purchases journal for July.**Transactions to Record:**- **July 1:** Purchased $17,500 of merchandise on credit from Hector Co., terms n/15.- **July 4:** Sold merchandise costing $620 to C. Paul for $730 cash.- **July 8:** Purchased $540 of office supplies from Zhang Co. on credit, terms n/30.- **July 15:** Paid Hector $17,500 cash for the merchandise purchased on July 1.- **July 21:** Purchased $975 of store supplies on credit from Staples, terms n/30.- **July 22:** Sold merchandise costing $2,300 to MicroTran for $2,800 on credit, terms n/30.- **July 23:** Purchased office supplies from Depot for $335 cash.- **July 25:** Purchased $4,200 of merchandise on credit from Alfredo Co., terms n/30.- **July 27:** Paid employee salaries of $1,950 in cash.**Purchases Journal:**This table is a structured template designed to record purchases made on credit. Below is an explanation of the table headers and their purposes:- **Date:** The date on which the transaction occurred.- **Account:** The name of the account involved in the transaction.- **Invoice:** The invoice reference number for the transaction.- **Terms:** The payment terms agreed upon for the transaction (e.g., n/30).- **Accounts Payable Credit (Cr.):** The credit entry recording the amount owed for the purchase.- **Inventory Debit (Dr.):** The debit entry for inventory, showing an increase in goods.- **Office Supplies Debit (Dr.):** The debit entry for office supplies when relevant.- **Other Accounts Debit (Dr.):** Any other accounts affected by the transaction.The template allows Gomez Company to track and manage its credit purchases effectively, supporting financial planning and analysis.

Name: **Educational Website Text: Journalizing Purchases for Gomez Company*
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: **Educational Website Text: Journalizing Purchases for Gomez Company**Gomez Company employs a comprehensive accounting system using various specialized journals: sales journal, purchases journal, cash receipts journal, cash payments journal, and gen

Purchases journal is an accounting record used to update every transactions of purchase made.PURCHASES JOURNAL Date of Accounts Office Other Date Account Invoice Terms Payable Cr. Inventory Dr. Supplies Dr. Accounts Dr. July 1 Hector Co. n/15 $17,500 $17,500 8 Zhang Co. n/30 $540 $540 21 Staples n/30 $975 $975 23 Depot Cash $335 25 Alfredo Co. n/30 $4,200 $4,200