Delete that transaction and instead create a journal entry for the purchase. If merchandise are purchased for cash, the accounts involved in the transaction are the purchases account and cash account.In today's video we're going to jump into qbo and show you the proper way to set up your assets. This reduction in the cash asset balances the journal entry. A guide to creating a Purchases Journal for tracking your expenses. This includes the format, calculation, and an example of how to use it. Step J: Complete Journal Entry. Enter a Notation if desired.