PRC-1 · Chapter 3 · Question 3 of 100
When 'Orion Manufacturing' purchases raw materials on credit, how is the periodic total of the Purchases Day Book posted to the ledgers?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Debited to the Purchases account in the General Ledger.
Explanation
The periodic total from the purchases day book represents the total credit purchases for the period. This aggregate amount is posted to the debit side of the Purchases Account in the General Ledger.
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