CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 10-1 Journalizing Sales on Account Using a Sales Journal These slides are available on the class website!

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning SPECIALIZED JOURNALS As a merchandising company why do we need a specialized journal for Purchases and Sales? 2 LESSON 10-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning SPECIALIZED JOURNAL As a merchandising company, the two major activities are buying and selling goods. Due to the large volume of Purchases and Sales, it makes sense to have specialized journals to record Purchases and Sales. Also Uncle Same needs his share! 3 LESSON 10-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning SALES TAX How does the government make money? 4 LESSON 10-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning SALES TAX On every sales transaction, the government gets it share. This is in the form of a sales tax. Businesses must file reports with the taxing agencies about their sales and taxes collected. The Sales Journal also helps in accounting for sales tax owed to the government. 5 LESSON 10-1

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 10-1 SALES TAX page 270

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 10-1 SALES OF MERCHANDISE ON ACCOUNT page 271

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 10-1 SALES JOURNAL page 272

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 10-1 SALES INVOICE page 272

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 10-1 SALE ON ACCOUNT page 273 November 3. Sold merchandise on account to Village Crafts, $540.00, plus sales tax, $32.40; total, $ Sales Invoice No Write the date. 6. Write the sales tax amount. 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.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 10-1 TOTALING, PROVING, AND RULING A SALES JOURNAL page 274