Journalizing Sales and Cash Receipts Using Special Journals

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Chapter 10

• Journalizing Sales and Cash Receipts Using
  Special Journals

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29. Sales tax and sales journal
Customer a person or business to whom
merchandise or services are sold Sales tax a
tax on a sale of merchandise or services
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29. Sales tax and sales journal
Sales journal a special journal used to record
ONLY sales of merchandise on account
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29. Sales tax and sales journal
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SALE ON ACCOUNT
page 273
November 3. Sold merchandise on account to
Village Crafts, 540.00, plus sales tax, 32.40
total, 572.40. Sales Invoice No. 76.
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1. Write the date.
2. Write the customer name.
3. Write the sales invoice number.
4. Write the total amount owed by the customer.
5. Write the sales amount.
6. Write the sales tax amount.
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TOTALING, PROVING, AND RULING A SALES JOURNAL
page 274
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30. Cash receipts and cash receipts journal
Cash sale sale in which cash is received for
the total amount of the sale at the time of the
transaction Credit card sale a sale in which a
credit card is used for the total amount of the
sale at the time of the transaction Point-of-sale
(POS) terminal a computer used to collect,
store, and report all the information of a sales
transaction Terminal summary a report that
summarizes the cash and credit card sales of a
point-of-sale terminal
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PROCESSING SALES TRANSACTIONS
pages 276- 277
(continued on next slide)
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PROCESSING SALES TRANSACTIONS
page 277
(continued from previous slide)
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30. Cash receipts and cash receipts journal
Batch report a report of credit card sales
produced by a point-of-sale terminal Batching
out the process of preparing a batch report of
credit card sales from a point-of-sale
terminal
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36. Cash receipts and cash receipts journal
Cash receipts journal a special journal used to
record ONLY cash receipt transactions Sales
discount a cash discount on sales taken by a
customer
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CASH AND CREDIT CARD SALES
page 279
November 4. Recorded cash and credit card sales,
5,460.00, plus sales tax, 327.60 total,
5,787.60. Terminal Summary 34.
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1. Write the date.
2. Place a check mark in the Account Title column.
3. Write the terminal summary document number.
4. Place a check mark in the Post. Ref. column.
5. Write the sales amount.
6. Write the sales tax amount.
7. Write the cash amount.
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CASH RECEIPTS ON ACCOUNT
page 280
November 6. Received cash on account from Country
Crafters, 2,162.40, covering S69. Receipt No. 90.
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1. Write the date.
2. Write the customers name.
3. Write the receipt number.
4. Write the credit amount.
5. Write the debit amount.
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JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES
DISCOUNTS
page 282
November 7. Received cash on account from
Cumberland Center, 1,176.00, covering Sales
Invoice No. 74 for 1,200.00, less 2 discount,
24.00. Receipt No. 91.
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4. Write the original invoice amount.
1. Write the date.
2. Write the customers name.
5. Write the amount of sales discount.
3. Write the receipt number.
6. Write the debit to cash.
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TOTALING, PROVING, AND RULING A CASH RECEIPTS
JOURNAL
page 283
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31. Credit memo and sales returns and allowances
Sales return credit allowed to a customer for
the sales price of returned merchandise,
resulting in a decrease in the vendors accounts
receivable Sales allowance credit allowed to a
customer for part of the sales price of
merchandise that is not returned, resulting in a
decrease in the vendors accounts receivable
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Credit memorandum (CM) a form prepared by the
vendor showing the amount deducted for returns
and allowances
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JOURNALIZING SALES RETURNS AND ALLOWANCES
page 286
March 11. Granted credit to Village Crafts for
merchandise returned, 58.50, plus sales tax,
3.51, from S160 total, 62.01. Credit
Memorandum No. 41.
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1. Write the date.
6. Write the sales tax amount.
2. Write Sales Returns and Allowances.
7. Write the accounts to be credited.
3. Write CM and the credit memorandum number.
8. Draw a diagonal line in the Post. Ref. column.
9. Write the total accounts receivable amount.
4. Write the amount of the sales return.
5. Write Sales Tax Payable.