1. LESSON 10-1 Journalizing Sales on Account Using a Sales Journal
6/27/2018
LESSON 10-1
Journalizing Sales on Account Using a Sales Journal

2. Journalizing Sales on Account
page 270
Customer - a person or business to whom merchandise or services are sold.
Sales tax – A tax on the sale of merchandise or services.
They are usually a percentage of sales.
The sales tax is a liability that must be paid to the government agency that collects it.
LESSON 10-1

3. SALES TAX
page 270
LESSON 10-1

4. SALES OF MERCHANDISE ON ACCOUNT
page 271
LESSON 10-1

5. SALES JOURNAL
page 272
Concept: Realization of Revenue – Revenue is recorded at the time goods or services are sold, regardless of when payment is made.
LESSON 10-1

6. SALES INVOICE
page 272
LESSON 10-1

7. SALES JOURNAL
page 272
Hobby Shack operates in a state with a 6% sales tax rate Price of goods x sales tax rate = sales tax $540 x 6% (.06) = $32.40 Price of goods + sales tax = Total amount $540 + $32.40 = $572.40
LESSON 10-1

8. 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. 76. 1 2 3 4 5 6
1. Write the date.
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.
6. Write the sales tax amount.
LESSON 10-1

9. TOTALING, PROVING, AND RULING A SALES JOURNAL
page 274
LESSON 10-1

10. TERMS REVIEW
page 275
customer
sales tax
sales journal
LESSON 10-1

11. Journalizing Cash Receipts Using a Cash Receipts Journal
LESSON 10-2
Journalizing Cash Receipts Using a Cash Receipts Journal

12. PROCESSING SALES TRANSACTIONS
page 277
Cash Register Receipt
UPC (Universal Product Code)
Point-of-Sale (POS) Terminal Receipt
(continued on next slide)
LESSON 10-2

13. PROCESSING SALES TRANSACTIONS
page 277
Terminal Summary
Batch Report
(continued from previous slide)
LESSON 10-2

14. CASH RECEIPTS JOURNAL
page 278
Sales discount – a cash discount taken by the customer to pay less than the invoice amount. This will reduce the amount of cash Hobby Shack receives on sales on account.
LESSON 10-2

15. CASH AND CREDIT CARD SALES
page 279
November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5, Terminal Summary 34. 2 4 1 3 5 6 7
1. Write the date.
2. Place a check mark in the Account Title column.
3. Write the terminal summary document number.
4. Place a check mark in the Post. Ref. column.
5. Write the sales amount.
6. Write the sales tax amount.
7. Write the cash amount.
LESSON 10-2

16. CASH RECEIPTS ON ACCOUNT
page 280
November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90. 1 2 3 4 5
1. Write the date.
2. Write the customer’s name.
3. Write the receipt number.
4. Write the credit amount.
5. Write the debit amount.
LESSON 10-2

17. JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS
page 281
To encourage prompt payment, Hobby Shack give credit terms of 2/10, n/30.
When customer pays the amount owed within 10 days, the sales invoice amount is reduced 2%.
Sales invoice x Sales Discount rate = Sales discount
$ x % (.02) = $24.00
Acc. Rec Sales Disc = Cash
$ $ = $1176
LESSON 10-1

18. JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS
page 282
November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sales Invoice No. 74 for $1,200.00, less 2% discount, $ Receipt No. 91. 1 2 3 4 5 6
1. Write the date.
4. Write the original invoice amount.
2. Write the customer’s name.
5. Write the amount of sales discount.
3. Write the receipt number.
6. Write the debit to cash.
LESSON 10-2

19. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
page 283
LESSON 10-2

20. TERMS REVIEW cash sale credit card sale point-of-sale (POS) terminal
page 284
cash sale
credit card sale
point-of-sale (POS) terminal
terminal summary
batch report
batching out
cash receipts journal
sales discount
LESSON 10-2

21. LESSON 10-3 Recording Transactions Using a General Journal
6/27/2018
LESSON 10-3
Recording Transactions Using a General Journal

22. CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES
page 285
LESSON 10-3

23. JOURNALIZING SALES RETURNS AND ALLOWANCES
page 286
March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $ Credit Memorandum No. 41. 2 4 1 3 5 6 9 8 7
1. Write the date.
6. Write the sales tax amount.
2. Write Sales Returns and Allowances.
7. Write the accounts to be credited.
3. Write CM and the credit memorandum number.
8. Draw a diagonal line in the Post. Ref. column.
4. Write the amount of the sales return.
9. Write the total accounts receivable amount.
5. Write Sales Tax Payable.
LESSON 10-3

24. TERMS REVIEW sales return sales allowance credit memorandum page 287
LESSON 10-3