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Purchase credit journal access is videotaped in the company’s account books when the company purchases the goods on credit from a 3rd party (vendor). When the purchases are made on credit terms, then the purchases account will be debited in the books of accounts of the company, which will be received the company’s income statement. The accounts the payable account will be debited because, with the credit purchase, the company’s liability rises, and this liability will be reflected in the company’s balance sheet until the very same gets settled by repaying the amount against such purchases to the vendor.
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