BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -A special journal used to record only purchases of mer-chandise on account is called a purchases journal.

Detailed explanation-2: -∎ special journal – a journal used to record only one kind of transaction. ∎ cost of merchandise – price a business pays for goods it purchases to sell. ∎ Markup – the amount added to the cost of merchandise to establish the selling price.

Detailed explanation-3: -In contrast to a general journal, each special journal records transactions of a specific type, such as sales or purchases. For example, when a company purchases merchandise from a vendor, and then in turn sells the merchandise to a customer, the purchase is recorded in one journal and the sale is recorded in another.

Detailed explanation-4: -The four main special journals are the sales journal, purchases journal, cash disbursements journal, and cash receipts journal. These special journals were designed because some journal entries occur repeatedly.

Detailed explanation-5: -What are Special Journals? Special journals are all accounting journals except for the general journal. These journals are used to record specific types of high-volume information that would otherwise be recorded in and overwhelm the general ledger.