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Star Company uses a purchases journal to record all purchases on account, including merchandise purchases. The company purchases merchandise and office supplies on a frequent
Star Company uses a purchases journal to record all purchases on account, including merchandise purchases. The company purchases merchandise and office supplies on a frequent basis. On November 12, Star Company purchased merchandise on account from Moon Company for $6,500, terms 2/10, n/30. How would this transaction be recorded in the purchases journal of Star Company? a. Debit Other Accounts for $6,500 and credit Cash for $6,500 b. Debit Merchandise Purchases for $6,370 and credit Accounts Payable for $6,370 c. Debit Merchandise Purchases for $6,500 and credit Accounts Payable for $6,500 d. Debit Accounts Payable for $6,500 and credit Merchandise Purchases for $6,500
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