Journal Entry Distributions—Purchases

Purchase Journal

Transaction	Debits	Credits
Purchase of expense on account	Purchase Expense	Accounts Payable*
Credit memo	Accounts Payable*	Inventory or Purchase Expense
Purchase of non-stock, labor, or service items on account	Salary and Wages Expense (or miscellaneous item expense)	Accounts Payable*
Purchase of stock or assembly items on account	Inventory	Accounts Payable*

Cash Disbursements Journal

Transaction	Debits	Credits
Cash purchase (payment made directly on invoice)	Accounts Payable*	Cash

*For companies using the cash-basis accounting method, Accounts Payable is replaced with <Cash Basis> and is not recorded in the General Ledger. Instead, expense (or inventory) and cash are recorded when the purchase is paid.