Lesson 18: Accounting: Purchases Journal, Vendor Accounts, Merchandise/Posting

What steps are involved in ordering merchandise for a business?
What is a purchase invoice, and what key information does it typically include?
What is the purchases journal, and why is it used in accounting?
How do you record a purchase of merchandise on credit in the purchases journal?
How do you post the transactions in the accounts payable subsidiary ledger and general ledger?

inventory, merchandise inventory, perpetual inventory, periodic inventory, physical inventory, cost of goods sold, requisition, purchases order, special journal, purchase on account, purchases journal, special amount column, purchase invoice, terms of sale, due date,

CTE Business & Finance Technology

B. Accounting Principles: Identify and describe generally accepted accounting principles (GAAP/IFRS) and explain how the application of these principles impacts the recording of financial transactions and the preparation of financial statements.

7. Determine the cost of inventory for businesses and apply appropriate valuation methods.




HS.CTE.3A - 3A. Demonstrate comprehension of concepts and/or processes.

The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs.

Description: To understand the accounting procedures involved in purchasing and selling merchandise, including recording purchases, sales, and related transactions

Purpose: comprehensive understanding of the key accounting procedures involved in ordering merchandise, the role and handling of purchase invoices, and how to accurately record sales transactions in the purchases journal.

DOK 1:
List the key accounting procedures involved in ordering merchandise
Identify the components that must be included in a sales transaction recorded in the purchases journal.
DOK 2
Compare and contrast the roles of purchase invoices and sales invoices in accounting.
Summarize the steps taken to accurately record a sales transaction in the purchases journal.
DOK 4:
Analyze and record business transactions in a purchases journal and post in the ledger

Independent practice accounting concepts/transactions promote critical thinking and problem-solving in accounting. Helps identify areas where they excel or need improvement.

Understanding how to properly document and track these orders helps the store ensure they have enough stock to meet customer demand and avoid overstocking, which can tie up capital and increase storage costs.

Purchase invoices and purchase orders are the same thing and can be used interchangeably

Sampling, modeling, one one instruction, Google classroom or Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students

Guided Notes worksheet

Guiding questions/term assignment

work together/on own assignment 

Century 21, Accounting,  General Journal, 11th edition, online/paper edition.

Online working papers (Mindtap)

Microsoft Excel software

Online instructional tools