THE SOURCE DOCUMENT USED TO MAKE ENTRIES IN THE PURCHASE DAY BOOK IS

• A. debt note
• B. credit note
• C. invoice ✓
• D. receipt

The answer to the question is: C. invoice

The purchase day book, also known as the purchases journal, is a specialized accounting journal used to record all credit purchases of merchandise. When a business makes a credit purchase, it receives an invoice from the supplier. An invoice is a commercial document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services that the seller has provided to the buyer. In accounting, the invoice serves as a primary source document for recording credit purchases in the purchase day book.

When a business receives an invoice for goods purchased on credit, it records the transaction in the purchase day book. The details recorded typically include the date of purchase, name of the supplier, invoice number, description of goods purchased, quantity, unit price, and total amount. This information is then posted to the appropriate accounts in the general ledger.

In summary, an invoice is the source document used to make entries in the purchase day book when recording credit purchases of merchandise.