1. Special Journals In Accounting
Learn the uses and rules of special journals

2. There are four special journals
The sales journal – all inventory sales on credit
The cash receipts journal – all receipts of cash, including inventory sales paid by cash.
The purchases journal – all purchases made on credit
The cash disbursements journal – all disbursements made by check (cash)
NOTE: If the journal entry does not fit into these categories, then it is posted to the general journal. All adjusting and closing entries are posted in the general journal.

3. Rules for Special Journals
If the transaction involves cash, it is recorded in either the cash receipts or cash disbursements journal.
If the transaction involves credit, it is recorded in either the purchases or sales journal.
All columns in the journals are posted to the general ledger at the end of the period (month) except for Other Accounts. Other Accounts are posted to the general ledger on the date of the entry.
Any entry related to a customer or vendor is updated in the subsidiary ledgers for accounts receivable (customers) or accounts payable (vendors)
There is also a subsidiary ledger for

4. Purchases Journal – All purchases on credit Columns reflect large volume, recurring purchases Example: Inventory purchase – Month End Update

5. Purchases Journal – All purchases on credit Columns reflect large volume, recurring purchases Example: Office Supplies purchase – Month End Update

6. Purchases Journal – All purchases on credit Columns reflect large volume, recurring purchases Example: Purchase of “other item” – GL account updated upon entry

7. Cash Disbursements Journal – All disbursements made by check Columns reflect large volume, recurring purchases Example: Payment on Accounts Payable– Month End Update

8. Cash Disbursements Journal – All disbursements made by check Columns reflect large volume, recurring purchases Example: Payment on Accounts Payable with purchase discount – Month End Update

9. Cash Disbursements Journal – All disbursements made by check Columns reflect large volume, recurring purchases Example: Payment for “other items” – GL updated upon entry

10. Sales Journal – All inventory sales on credit Only two columns but four GL accounts affected Column totals for all four GL accounts updated at month end

11. Cash Receipts Journal – All receipts of cash Columns reflect large volume, recurring receipts Example: Cash receipt on accounts receivable – Month End update

12. Cash Receipts Journal – All receipts of cash Columns reflect large volume, recurring receipts Example: Cash receipt on accounts receivable with discount – Month End update

13. Cash Receipts Journal – All receipts of cash Columns reflect large volume, recurring receipts Example: Cash sales of inventory – Month End update

14. Cash Receipts Journal – All receipts of cash Columns reflect large volume, recurring receipts Example: Cash proceeds from loan – GL updated upon entry

15. Subsidiary Ledgers
There are three subsidiary ledgers – one for accounts receivable, one for accounts payable, and one for inventory. These ledgers have account balances by customer, vendor, or inventory type. When each customer (AR), vendor (AP), and inventory accounts is added up, the total should agree to the total in the general ledger.
These are updated for each and every accounts receivable, accounts payable, and inventory transaction/entry to provide instant information to management.
For your Connect assignment, every entry related to a customer or vendor is updated in the subsidiary ledgers for accounts receivable (customers) or accounts payable (vendors). But no inventory subsidiary ledger.
For your Perdisco project, there will also be an inventory subsidiary ledger that is updated for each inventory transaction.