Journalizing Sales and Cash Receipts Using Special Journals Chapter 11 Journalizing Sales and Cash Receipts Using Special Journals

Sales Tax Customer: a person or business to whom merchandise or services is sold Sales Tax: tax on the sale of merchandise or services Businesses must file reports regarding sales tax Sales Tax= Price * Sales Tax % Total= Price + Sales Tax

11.1 Sales Journal- Merchandise on Account Realization of Revenue- when revenue is recorded at the time goods or services are sold Sale on account- aka: charge sale Sales Journal- Sales of Merchandise on Account only

Sales Invoice AKA: sales ticket or sales slip Seller- sales invoice Customer- purchase invoice

Sale on Account November 3. Sold merchandise on account to Children’s Paradise, $816.00, plus sales tax, $48.96. Sales invoice #76 Journalize: Date, Account Name, Sale # Total Amount-A/R Debit Sales Credit-Merchandise Amount Sales Tax Credit-Amount of Tax

Totaling Sales Jounral At the end of the month- prove, rule, total Sales journal Debits Columns=Credits Columns

11. 1 REVIEW p. 258 Terms Review Audit Your Understanding #1- 4 Work Together #5-6 On Your Own #7-8

11.2 Cash Receipts Journal Cash Sale- sale where cash is received Credit Card Sale- sale using a credit card

Cash Receipts Journal Cash Receipts Journal- Record only cash receipt transactions (cash or cc)

Cash and Credit Cards November 3. Recorded cash and credit card sales, $5,460, plus tax $327.60; total $5787.60. Cash Register Tape #4 To Journalize: Date, Check Mark (no account name needed), Doc # Credit Sales and Sales Tax Debit Cash- Total of Sales and Tax

Cash Receipts on Account November 6. Received cash on account from Fiesta Costumes, $2,162.40, covering S69. R90. To Journalize: Date, Account Title (A/R), Doc # Credit (A/R- decreasing their balance) Debit Cash- Increasing Cash

Totaling & Proving Follow the same procedures as the Cash Payments Journal Debit Columns= Credit Columns Double Lines show columns prove and are verified!

Proving Cash Prove Cash at the end of each month To Calculate: Cash on hand at start of month + Total Cash Received (Cash Debit) =Total - Cash Paid (Cash Credit-Cash Payments) =Cash Balance on Hand at end of Month This total should prove to checkbook balance on next unused check stub

11.2 REVIEW: p. 264 Terms Review Audit Your Understanding #1- 3 Work Together #4-7 On Your Own #8-11

Chapter 11 Review Application Problems 11.1- 11.2 Test Wednesday March 2.

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