1. GOALS BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 1 12.1Cash Sales and Sales on Account Complete a cash proof form Calculate sales invoice and credit memo totals Calculate a customer account balance

2. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 2 Cash Registers Cash registers provide a place to keep cash and a means to record cash sales and payments. Employees who use cash registers are called cash register clerks or cashiers.

3. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 3 Computer Terminals Most cash registers are computer terminals with a display screen and a scanner that is connected to a computer. The scanner reads bar codes printed on the items being purchased. The bar codes tell the computer the department, brand, size, and price of each item bought.

4. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 4 Display Screen and Cash Register Receipt This information is shown on the display screen and printed on a cash register receipt. The computer also finds the sales tax, totals the sale, and updates inventory records. When the clerk keys in the amount received from the customer, the correct change is displayed on the screen. The computer also keeps a running total of sales.

5. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 5 Change Fund Cashiers put money in the cash register drawer when they start work so they can make change. This money is called a change fund. While they work, they take in and pay out cash. At the end of their work period, cashiers take a reading of total sales for their register. Then they have to prove cash.

6. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 6 Proving Cash Proving cash means counting the money in the drawer and checking this amount against the cash register readings to see if the right amount is on hand. A cash proof form is used for this purpose. If you have less cash than you should, you are cash short. If you have more cash than you should, you are cash over.

7. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 7 Sales Invoice When a seller sells goods to a buyer on credit, the seller gives the customer a sales invoice. A sales invoice lists the goods sold and delivered to the buyer. The buyer calls this form a purchase invoice. On the sales invoice the unit price is multiplied by the quantity to find the price extension. The price extensions are added together to find the total amount of the invoice.

8. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 8 Sample Sales Invoice

9. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 9 Credit Memo When merchandise bought on credit is returned, the seller does not return the buyer’s money. Instead, the seller reduces the buyer’s account balance by the amount of the return. The seller notifies the buyer about the reduction by sending the buyer a credit memorandum, or credit memo.

10. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 10 Sample Credit Memo

11. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 11 BUSINESS TIP A credit memo may be issued when the buyer returns defective goods to the seller or when the seller gives a price reduction for damaged goods reported by the buyer. Sometimes a buyer returns stock for other reasons. If so, the seller may charge a restocking fee that is deducted from the credit the buyer would normally receive.

12. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 12 Customer Account Balance Most people use credit cards when they do not pay cash for a purchase. Businesses whose customers are other businesses often let them buy on credit, or on account. The seller then keeps records for each customer to show how much each customer owes.

13. BUSINESS MATH© Thomson/South-WesternLesson 12.1Slide 13 Common Form of Customer Account