Which journal would be used for recording sales of merchandise on credit?

The sales journal is specifically designed to record all sales of merchandise made on credit. This type of journal allows businesses to keep track of sales transactions that do not involve immediate cash payment. When a sale is made on credit, it typically involves an accounts receivable entry, which means the company expects to receive payment from the customer at a later date.

By using a sales journal, a business can easily monitor its credit sales, making it simpler to manage outstanding accounts receivable and perform financial analysis related to sales trends. This specialized journal is particularly important for businesses that offer credit terms to their customers, allowing for organized tracking and reporting.

In contrast, the other journals serve different purposes. The cash payments journal is used to record cash outflows, while the cash receipts journal is for documenting cash inflows. The purchases journal is specifically for recording purchases of merchandise on credit, which is not relevant to sales transactions. Thus, the sales journal is the most appropriate choice for recording credit sales transactions.