Sales and Cash Receipts journal Chapter 11 Sales and Cash Receipts journal

Terms you need to know Customer – a person or business to who merchandise or services are sold. Sales Tax – a tax on a sale of merchandise or services.

Sales journal Sales Journal Date Account Debited Sales No Post Ref Rec. Debit Sales Credit Sales Tax Payable Credit  

Nov 3. Sold merchandise on account to Children’s Paradise, $816 Nov 3. Sold merchandise on account to Children’s Paradise, $816.00 plus sales tax, $48.96; total, $864.96. Sales Invoice No. 76 Sales Journal Date Account Debited Sales No Post Ref Account Rec. Debit Credit Sales Tax Payable 3-Nov Childrens Paradise 76   864.96 816 48.96

“ On your own” 10-1

Cash Receipts Journal

Terms you need to know If you have your textbook look at page 276 Cash Sale A sale in which cash is received for the total amount of the sale. Credit Card Sale A Sale in which cash is received for the total amount of the sale.

Cash Receipt journal Cash Receipt Journal Date Account Title Doc No. Post Ref General Acct Rec Credit Sales Tax Payable Cash Debit  

November 4 Recorded Cash and Credit card sale, $5,460 November 4 Recorded Cash and Credit card sale, $5,460.00 plus sales tax, $327.60 total $5787.60. Cash Tape No 4 Cash Receipt Journal Date Account Title Doc No. Post Ref General Acct Rec Credit Sales Tax Payable Cash Debit 4-Nov   T4 5460 327.6 5787.6

Nov. 6 Received Cash on account from Fiesta Costumes $2162 Nov. 6 Received Cash on account from Fiesta Costumes $2162.40, covering s 69 Receipt No. 90 Cash Receipt Journal Date Account Title Doc No. Post Ref General Acct Rec Credit Sales Tax Payabe Cash Debit 4-Nov   T4 5460 327.6 5787.6 6-Nov Fiesta Costumes R90 2162.4

When we give a discount to our customer. November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sale Invoice No. 74 for $1,200, less 2% discount, $24.00. Receipt No. 91 Cash Receipt Journal Date Account Title Doc No. Post Ref General Acct Rec Credit Sales Tax Payable Sales Discount Debit Cash Debit 4-Nov   T4 5460 327.6 5787.6 6-Nov Fiesta Costumes R90 2162.4 7-Nov Cumberland Center R91 1200  24 1176 Sales Discount- terms of contract 2/10 N30 2% discount if paid within 10 days of sale or balance is paid in 30

On your own page 284 in your textbook.

Recording Transactions Using a General Journal Sales Return and Allowance – When we sell something and have it returned. Source document is the credit memorandum We have to return the money owed for the item plus the taxes that went with it….

When someone buys something for us, this is how we break it down.. Sales tax – what the government gets Total Received at register Cash Receipt Journal Date Account Title Doc No. Post Ref General Acct Rec Credit Sales Tax Payable Sales Discount Debit Cash Debit Jan 6   T6 2.00 .10 2.10 Sale amount (what we get) So if someone buys candy bar and a slurpee from us Candy bar $1.00 Slurpee $1.00 Candy bar .05 Slurpee .05 Candy bar 1.05 Slurpee 1.05 Total of $2.10 Now lets pretend that someone returned the candy bar back to our store. What do we do? How much do we give them back?

So if they returned the candy bar what do we give them back? Slurpee $1.00 Candy bar .05 Slurpee .05 Candy bar 1.05 Slurpee 1.05 Total of $2.10 General Journal Page 1 Date Account Title Doc No Post Ref Debit Credit Jan 6    Sales Return and Allowance 1.00 Sales Tax Payable  .05 Cash  1.05

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 General Journal Page 1 Date Account Title Doc No Post Ref Debit Credit Jan 6    Sales Return and Allowance 58.50 Sales Tax Payable  3.51 Accounts Recievable/Village Crafts  62.01

Problems 11-1,2,3,4 Computer Problem 11-3