1. Special Journals: Sales and Cash Receipts
Chapter 16 $
Special Journals: Sales and Cash Receipts $
Making Accounting Relevant
In a merchandising business, revenue from sales fuels business operations. $ $
What tactics do businesses in your area use to increase sales?

2. $ $ $ $ Section 1 The Sales Journal What You’ll Learn Chapter 16
To identify the special journals and how they are used.
How to record sales of merchandise on account in a sales journal.
How to post from the sales journal to the accounts receivable subsidiary ledger accounts.
How to foot, prove, total, and rule the sales journal.
How to post column totals from the sales journal to the general ledger. $ $ $

3. $ $ $ $ Why It’s Important Key Terms Chapter 16 special journals
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Why It’s Important
The use of the sales journal provides a systematic method of keeping track of sales on account. $ $
Key Terms
special journals
sales journal
footing $

4. $ $ $ $ Special Journals Chapter 16
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Special Journals
Special journals have amount columns used to record debits and credits to specific general ledger accounts. $
Journal Transaction $
Sales Journal sales of merchandise on account
Cash Receipts Journal receipt of cash $
Purchases Journal purchase of any asset on account
Cash Payments Journal payment of cash, including payments by check

5. $ $ $ $ The Sales Journal Chapter 16
Section 1 The Sales Journal (con’t.)
Chapter 16 $
The Sales Journal
The sales journal is a special journal used to record sales of merchandise on account. $ $
Record the amount of the
merchandise sold on account $
Record the amount of sales tax on
the sale
Record the total amount to be received from the customer on account

6. $ $ $ $ Recording Sales of Merchandise on Account Chapter 16
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Recording Sales of Merchandise on Account
Business Transaction $
On December 1 On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50. $
JOURNAL ENTRY $

7. Section 1 The Sales Journal (con’t.)
Chapter 16 $
Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger
To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger. $ $ $

8. $ $ $ $ Footing, Totaling, Proving, and Ruling the Sales Journal
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Footing, Totaling, Proving, and Ruling the Sales Journal $ $ $

9. $ $ $ $ Posting the Total of the Sales Credit Column Chapter 16
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Posting the Total of the Sales Credit Column
Next, transfer the amount in the Sales column to the general ledger. $ $ $

10. $ $ $ $ Posting the Total of the Sales Tax Payable Credit Column
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Posting the Total of the Sales Tax Payable Credit Column
Next, transfer the amount in the Sales Tax Payable column to the general ledger. $ $ $

11. $ $ $ $ Posting the Total of the Accounts Receivable Debit Column
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Posting the Total of the Accounts Receivable Debit Column
The last amount to be transferred to the general ledger is the Accounts Receivable Debit column. $ $ $

12. $ $ $ $ Proving the Sales Journal at the End of a Page Chapter 16
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Proving the Sales Journal at the End of a Page
If a business has many transactions in one month, and it cannot fit them onto one journal page, the journal page must be totaled before a new page is started. $ $ $

13. 16-2 S3
2010
Jun 15
113
M&M Consultants 
8 2 0
4 1
8 6 1
M&M Consultants
2010
Balance
3 0 0
Jun 1 15
113 S3
8 6 1

14. $ $ $ $ 1. What columns does the sales journal contain?
Section 1 The Sales Journal (con’t.)
Chapter 16 $
Check Your Understanding
1. What columns does the sales journal contain? $ $
2. What does an account number written in parenthesis under a column total mean? $

15. $ $ $ $ Section 2 The Cash Receipts Journal What You’ll Learn
Chapter 16 $
Section 2 The Cash Receipts Journal
What You’ll Learn
How to record transactions in the cash receipts journal.
How to post from the cash receipts journal to accounts receivable subsidiary ledger accounts.
How to post amounts in the General Credit column of the cash receipts journal to general ledger accounts.
How to post column totals from the cash receipts journal to the general ledger.
How to prepare a schedule of accounts receivable. $ $ $

16. $ $ $ $ Why It’s Important Key Terms Chapter 16 cash receipts journals
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Why It’s Important
Use of the cash receipts journal will save time and reduce errors. $ $
Key Terms
cash receipts journals
schedule of accounts receivable $

17. $ $ $ $ The Cash Receipts Journal Chapter 16
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
The Cash Receipts Journal
A special journal used to record all cash receipt transactions. $ $ $

18. $ $ $ $ Recording Cash from Charge Customers Chapter 16
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Recording Cash from Charge Customers
Business Transaction $
On December 5 On
Your Mark received $212
from Casey Klein to
apply on account,
Receipt 301. $
JOURNAL ENTRY $

19. $ $ $ $ Recording Cash Received on Account, Less a Cash Discount
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Recording Cash Received on Account, Less a Cash Discount
Business Transaction $
On December 12 On
Your Mark received $1,470
from South Branch High
School Athletics in pay-
ment of Sales Slip 51 for
$1,500 less the discount of $30, Receipt 302. $
JOURNAL ENTRY $

20. $ $ $ $ Recording Cash Sales Chapter 16 Business Transaction
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Recording Cash Sales
Business Transaction $
On December 15 On Your
Mark records the cash sales
for the first two weeks of
December, $3,000, and $180
in related sales taxes,
Tape 55. $
JOURNAL ENTRY $

21. $ $ $ $ Posting to the Accounts Receivable Subsidiary Ledger
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Posting to the Accounts Receivable Subsidiary Ledger
Daily postings are made from the Accounts Receivable Credit column to the accounts receivable subsidiary ledger. $ $ $

22. $ $ $ $ Posting the General Credit Column Chapter 16
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Posting the General Credit Column
Daily postings are made from the General Credit column of the cash receipts journal to the appropriate accounts in the general ledger. $ $ $

23. Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Footing, Totaling, Proving, and Ruling the Cash Receipts Journal
To complete the cash receipts journal, follow these steps: $ $
1. Draw a single rule across the six amount columns.
2. Foot the columns.
3. Test for the equality of debits and credits. $

24. Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Footing, Totaling, Proving, and Ruling the Cash Receipts Journal (con’t.) $
4. In the Date column, on the line below the single rule, enter the date the journal is being totaled.
5. On the same line in the Account Name column, enter the word “Totals.”
6. Enter the columns totals, in ink, just below the footings.
7. Double-rule the amount columns. $ $

25. $ $ $ $ Posting Column Totals to the General Ledger Chapter 16
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Posting Column Totals to the General Ledger
There are six amount columns in the cash receipts journal used by On Your Mark. Only five of the column totals, however, are posted to the general ledger.
The total of the General Credit column is not posted. The entries in this column have already been posted, individually, to the general ledger accounts. $ $ $

26. $ $ $ $ Posting Column Totals to the General Ledger (con’t.)
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Posting Column Totals to the General Ledger (con’t.) $
The total in each of the other five amount columns is posted to the general ledger account named in the column heading. $ $

27. $ $ $ $ Proving the Accounts Receivable Subsidiary Ledger Chapter 16
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Proving the Accounts Receivable Subsidiary Ledger $
A schedule of accounts receivable is a report listing each charge customer, the balance in the customer’s account, and the total amount due from all customers. $ $

28. $ $ $ $ Proving the Accounts Receivable Subsidiary Ledger (con’t.)
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Proving the Accounts Receivable Subsidiary Ledger (con’t.) $ $ $

29. $ $ $ $ Check Your Understanding Chapter 16
Section 2 The Cash Receipts Journal (con’t.)
Chapter 16 $
Check Your Understanding $
What is included in a schedule of accounts receivable? $ $