Describe the workings of the purchases journal.

Question: Describe the workings of the purchases journal.

The purchases journal is a special journal that records all purchases of merchandise on credit. It is used to keep track of the inventory and accounts payable of a business. The purchases journal has four columns: date, supplier, invoice number, and amount. Each entry in the purchases journal debits the inventory account and credits the accounts payable account. At the end of the accounting period, the total amount in the purchases journal is posted to the general ledger.

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