For Each of the Transactions Listed Below, Identify the Journal

question 49

Multiple Choice

For each of the transactions listed below, identify the journal that should be used to record the transaction. Use CR for cash receipts journal, CP for cash payments journal, S for sales journal, P for purchases journal, and G for general journal.
-Purchased merchandise; the supplier's invoice, which includes a freight charge, has payment terms of 2/10, n/30.

• A)CR for cash receipts journal
• B)CP for cash payments journal
• C)S for sales journal
• D)P for purchases journal
• E)G for general journal.

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Definitions:

Operating Income

Earnings from a company’s primary business activities, excluding deductions of interest and taxes.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor.

Transfer Price

The price at which goods and services are sold between divisions within the same company, often used for accounting and tax purposes.

Variable Cost

A cost that varies directly and proportionally with changes in production volume or activity level, such as materials and labor costs.