Credit purchases use the purchases journal

Steps:

• Identify the transaction as a credit purchase of goods from a supplier.
• Recall that books of prime entry categorize transactions by type for efficient recording.
• Match credit purchases to the specialized journal for incoming goods on account.
• Confirm the entry debits purchases and credits accounts payable.

Why C is correct:

• The purchases journal is defined as the book of prime entry for recording all credit purchases of goods from suppliers, streamlining inventory and liability tracking.

Why the others are wrong:

• A: Cash book records only cash inflows and outflows, not credit transactions.
• B: General journal handles miscellaneous or adjusting entries, not routine credit purchases.
• D: Sales journal records credit sales to customers, not purchases from suppliers.

Final answer: C