Sales and purchase journal doesn’t record A. Credit sales B. Credit purchases C. Credit sales and purchases D. Cash sales and purchases

The correct answer is: D. Cash sales and purchases

A sales journal is a book of original entry used to record sales of goods or services on credit. A purchase journal is a book of original entry used to record purchases of goods or services on credit. Both journals are used to track the financial performance of a business.

Cash sales and purchases are not recorded in the sales and purchase journals because they are already recorded in the cash receipts journal and cash disbursements journal, respectively. The cash receipts journal is used to record all cash receipts, including cash sales. The cash disbursements journal is used to record all cash disbursements, including cash purchases.

Here is a brief explanation of each option:

• Option A: Credit sales are recorded in the sales journal.
• Option B: Credit purchases are recorded in the purchase journal.
• Option C: Credit sales and purchases are recorded in both the sales journal and the purchase journal.
• Option D: Cash sales and purchases are not recorded in the sales and purchase journals.