Special journals: sales and cash receipts Chapter 16

Using Special Journals Used to record debits and credits to specific general ledger accounts Most transactions take one line Simplify the posting process

Special Journals Journal Transaction Sales Journal Sale of Merchandise on Account Cash Receipts Journal Receipt of Cash (Debit Cash) Purchases Journal Purchase of Any Asset on Account Cash Payments Journal Payment of Cash (Credit Cash)

Journalizing and Posting to the Sales Journal Sales Journal – a special journal used to record sales of merchandise on account One line Sales, Sales Tax (credits) and AR (debit) Remember: Not all customers pay tax 6 Steps Outlined on pg 451

Posting From Sales Journal to the AR Subsidiary Ledger Post daily from Sales Journal to AR Subsidiary Similar process compared to posting from Gen Journal Post Reference S# (S for Sales Journal)

Completing the Sales Journal Do not post each transaction separately Post totals Sales Credit, Sales Tax Payable Credit, AR Debit

Footing, Proving, Totaling and Ruling Single Rule each column Foot the columns Footing – a column total written small and in pencil Prove the ledger – Test for the equality of debits and credits. Separate sheet of paper Enter the total amounts, in ink, below the footings Double Rule

Proving at the end of a page Carried Forward No Double Rule Brought Forward

The Cash Receipts Journal Used anytime a company receives cash Sale of merchandise (cash sales, bankcard sales) Payment from credit customers Selling other stuff ??? 6 Accounts Cash & Sales Discounts are the debits General, Sales, Sales Tax and AR are credits

Cash Receipts Journal Book Examples Steps go from left to right

Posting from Cash Receipts Journal Checks, dashes and account numbers Checks for Credit Customers Dashes for cash sales Account number if you use General Credit column

Schedule of Accounts Receivable Schedule of accounts receivable – lists each charge customer, the balance and the total due from all charge customers Sum at the bottom of the Schedule of AR = balance in AR controlling account Detects errors in calculations and failing to post Does not detect errors of posting to wrong customer