1. Special journals: sales and cash receipts
Chapter 16

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

3. 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)

4. 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

5. 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)

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

7. 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

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

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

10. Cash Receipts Journal
Book Examples
Steps go from left to right

11. 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

12. 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