1. Chapter 16 Special Journals: Sales and Cash Receipts
What You’ll Learn
Identify the special journals and explain how they are used in a merchandising business.
Record transactions in sales and cash receipts journals.
Post from the sales and cash receipts journals to customer accounts in the accounts receivable subsidiary ledger.
Foot, prove, total, and rule the sales and cash receipts journals.
Post column totals from the sales and cash receipts journals to general ledger accounts.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

2. The Sales Journal Main Idea You Will Learn
SECTION 16.1
Main Idea
The sales journal is used to record credit sales of merchandise.
You Will Learn
the purpose of special journals.
how to use the sales journal.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3. The Sales Journal Using Special Journals
SECTION 16.1
Using Special Journals
Each transaction in a general journal requires at least three journal lines. To improve efficiency merchandising businesses can use special journals. Special journals have amount columns used to record debits and credits to general ledger accounts. The four most commonly used special journals are:
sales journal,
cash receipts journal,
purchases journal, and
cash payments journal.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4. The Sales Journal Journalizing and Posting to the Sales Journal
SECTION 16.1
Journalizing and Posting to the Sales Journal
The sales journal is used to record sales of merchandise on account.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

5. The Sales Journal
SECTION 16.1
Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

6. The Sales Journal Completing the Sales Journal
SECTION 16.1
Completing the Sales Journal
Only the amount column totals from the special journals are posted to the general ledger accounts. For the sales journal, the column totals posted are
the Sales Credit,
the Sales Tax Payable Credit, and
the Accounts Receivable Debit.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

7. The Sales Journal
SECTION 16.1
Footing, Proving, Totaling, and Ruling the Sales Journal
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

8. The Sales Journal Posting the Total of the Sales Credit Column
SECTION 16.1
Posting the Total of the Sales Credit Column
5. In the sales journal, enter the Sales account number, in parentheses, below the double rule in the Sales Credit column.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

9. The Sales Journal
SECTION 16.1
Posting the Total of the Sales Tax Payable Credit Column
5. In the sales journal, enter the Sales Tax Payable account number, in parentheses, below the double rule in the Sales Tax Payable Credit column.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

10. The Sales Journal
SECTION 16.1
Posting the Total of the Accounts Receivable Debit Column
In the sales journal, enter the Accounts Receivable account number, in parentheses, below the double rule in the Accounts Receivable Debit column.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

11. The Sales Journal Proving the Sales Journal at the End of a Page
SECTION 16.1
Proving the Sales Journal at the End of a Page
Sometimes the transactions will not fit on a single page. When this occurs, the journal page must be totaled and ruled before a new page is started.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.