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Accounting for Sales and Cash Receipts
Chapter 10 Accounting for Sales and Cash Receipts
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Learning Targets Explain the relationship between accounts receivable ledger and its controlling account Record sales on account using the sales journal and post Record cash & credit card sales using cash receipts journal and post Prepare a schedule of A/R
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10-1 Journalizing Sales on Account Using a Sales Journal
Terms: Selling Price – the amount a business receives from the sale of an item of merchandise. Markup – the amount a business adds to the cost of merchandise to establish the selling price. Sales Tax – A tax on a sale of merchandise or service. Sales Journal – Special Journal used to record only sales of merchandise on account.
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10.1 Accounts Receivable Ledger – a subsidiary ledger containing all accounts for charge customers. Sales Journal – a special journal used to record only sales of merchandise on account.
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Mama Bear = Sales Credit Papa Bear = Accts. Rec. Debit
Baby Bear = Sales Tax Payable Credit
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10.3 Cash Receipts The last journal of the five!!!
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10-3 Journalizing Cash Receipts Using a Cash Receipts Journal
Terms: Cash Sale – A sale in which cash is received for the total amount of the sale at the time of the transaction. Credit Card Sale – A sale in which a credit card is used for the total amount of the sale at the time of the transaction. Point of Sale (POS) Terminal – A computer used to collect, store, and report all the information of a sales transaction.
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Terms Continued… Terminal Summary – The report that summarizes cash and credit card sales of a point-of-sale terminal. Batch Report – A report of credit card sales produced by a point-of-sale terminal. Batching Out- The process of preparing a batch report of credit card sales from a point-of-sale terminal.
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Terms Continued... Cash Receipts Journal – A special journal used to record only cash receipt transactions. Sales Discount – A cash discount on sales taken by a customer (contra account).
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Terms Finished!!!!
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