1. Sales and Cash Receipts journal
Chapter 11
Sales and Cash Receipts journal

2. Terms you need to know
Customer – a person or business to who merchandise or services are sold.
Sales Tax – a tax on a sale of merchandise or services.

3. Sales journal Sales Journal Date Account Debited Sales No Post Ref
Rec.
Debit
Sales Credit
Sales Tax
Payable
Credit

4. Nov 3. Sold merchandise on account to Children’s Paradise, $816
Nov 3. Sold merchandise on account to Children’s Paradise, $ plus sales tax, $48.96; total, $ Sales Invoice No. 76
Sales Journal
Date
Account Debited
Sales No
Post
Ref
Account
Rec. Debit
Credit
Sales Tax
Payable
3-Nov
Childrens Paradise 76
864.96
816
48.96

5. “ On your own” 10-1

6. Cash Receipts Journal

7. Terms you need to know If you have your textbook look at page 276
Cash Sale
A sale in which cash is received for the total amount of the sale.
Credit Card Sale
A Sale in which cash is received for the total amount of the sale.

8. Cash Receipt journal Cash Receipt Journal Date Account Title Doc No.
Post
Ref
General
Acct
Rec
Credit
Sales
Tax
Payable
Cash
Debit

9. November 4 Recorded Cash and Credit card sale, $5,460
November 4 Recorded Cash and Credit card sale, $5, plus sales tax, $ total $ Cash Tape No 4
Cash Receipt Journal
Date
Account
Title
Doc
No.
Post
Ref
General
Acct
Rec
Credit
Sales
Tax
Payable
Cash
Debit
4-Nov T4
5460
327.6
5787.6

10. Nov. 6 Received Cash on account from Fiesta Costumes $2162
Nov. 6 Received Cash on account from Fiesta Costumes $ , covering s 69 Receipt No. 90
Cash Receipt Journal
Date
Account Title
Doc
No.
Post
Ref
General
Acct
Rec
Credit
Sales
Tax
Payabe
Cash
Debit
4-Nov T4
5460
327.6
5787.6
6-Nov
Fiesta Costumes
R90
2162.4

11. When we give a discount to our customer.
November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sale Invoice No. 74 for $1,200, less 2% discount, $ Receipt No. 91
Cash Receipt Journal
Date
Account Title
Doc
No.
Post
Ref
General
Acct
Rec
Credit
Sales
Tax
Payable
Sales Discount Debit
Cash
Debit
4-Nov T4
5460
327.6
5787.6
6-Nov
Fiesta Costumes
R90
2162.4
7-Nov
Cumberland Center
R91
1200  24
1176
Sales Discount- terms of contract 2/10 N30
2% discount if paid within 10 days of sale or balance is paid in 30

12. On your own page 284 in your textbook.

13. Recording Transactions Using a General Journal
Sales Return and Allowance – When we sell something and have it returned.
Source document is the credit memorandum
We have to return the money owed for the item plus the taxes that went with it….

14. When someone buys something for us, this is how we break it down..
Sales tax – what the government gets
Total Received at register
Cash Receipt Journal
Date
Account Title
Doc
No.
Post
Ref
General
Acct
Rec
Credit
Sales
Tax
Payable
Sales Discount Debit
Cash
Debit
Jan 6 T6
2.00
.10
2.10
Sale amount (what we get)
So if someone buys candy bar and a slurpee from us
Candy bar $1.00
Slurpee $1.00
Candy bar .05
Slurpee
.05
Candy bar 1.05
Slurpee
1.05
Total of $2.10
Now lets pretend that someone returned the candy bar back to our store. What do we do? How much do we give them back?

15. So if they returned the candy bar what do we give them back?
Slurpee $1.00
Candy bar .05
Slurpee
.05
Candy bar 1.05
Slurpee
1.05
Total of $2.10
General Journal
Page 1
Date
Account Title
Doc No
Post Ref
Debit
Credit
Jan 6 
Sales Return and Allowance
1.00
Sales Tax Payable
 .05
Cash
 1.05

16. March 11, Granted Credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $ Credit Memorandum No. 41
General Journal
Page 1
Date
Account Title
Doc No
Post Ref
Debit
Credit
Jan 6 
Sales Return and Allowance
58.50
Sales Tax Payable
 3.51
Accounts Recievable/Village Crafts
 62.01

17. Problems 11-1,2,3,4
Computer Problem 11-3