1. LESSON 10-1 Journalizing Sales on Account Using a Sales Journal
4/17/2017
LESSON 10-1
Journalizing Sales
on Account
Using a Sales Journal

2. Sales Tax: A tax on the sale of merchandise or services.
New Vocabulary
Customer: A person or business to whom merchandise or services are sold.
Sales Tax: A tax on the sale of merchandise or services.
10-1

3. SALES TAX
page 270
10-1

4. SALES OF MERCHANDISE ON ACCOUNT
page 271
10-1

5. Vocabulary
Sales Journal: A special journal used to record only sales of merchandise on account.
10-1

6. SALES INVOICE
page 272
10-1

7. SALE ON ACCOUNT
page 273
November 3. Sold merchandise on account to Village Crafts, $540.00, plus sales tax, $32.40; total, $ Sales Invoice No. 76.
10-1

8. TOTALING, PROVING, AND RULING A SALES JOURNAL
page 274
10-1

9. Audit Your Understanding
How are sales tax rates usually stated?
As a percentage of sales
10-1

10. Audit Your Understanding
Why is sales tax collected considered a liability?
The amount of sales tax collected is a business liability until paid to the government.
What is the title of the general ledger account used to summarize the total amount due from all charge customers?
Accounts Receivable
10-1

11. Work Together & OYO
P. 275
10-1

12. Journalizing Cash Receipts Using a Cash Receipts Journal
LESSON 10-2
Journalizing Cash Receipts Using a Cash Receipts Journal

13. New Vocabulary
Cash sale: A sale of which cash is received for the total amount the sale at the time of the transaction (Includes credit card sales)
Credit card sale: A sale in which a credit card is used for the total amount of the sale at the time at the transaction
Point-of-sale terminal: A computer used to collect, store, and report all the information of sales transaction
10-1

14. PROCESSING CASH SALES TRANSACTIONS
page 277
Cash Register Receipt
Point-of-Sale (POS) Terminal Receipt
UPC (Universal Product Code)
(continued on next slide)
10-1

15. New Vocabulary
Terminal Summary
Terminal Summary: A report that summarizes the cash and credit card sales of a point-of-sale terminal
10-1

16. New Vocabulary
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
Batch Report
10-1

17. New Vocabulary
Cash Receipts Journal: A special journal used to record only cash receipt transactions
Sales discount: the cash discount on sales taken by a customer when paying early

18. CASH AND CREDIT CARD SALES
page 279
November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5, Terminal Summary 34.
10-1

19. CASH RECEIPTS ON ACCOUNT
page 280
November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90.
10-1

20. CASH RECEIPT ON ACCOUNT --with a 2% sales discount
page 282
November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sales Invoice No. 74 for $1,200.00, less 2% discount, $ Receipt No. 91.
10-1

21. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
page 283
10-1

22. Audit Your Understanding
Who transfers files between the banks involved in the credit card sales?
The funds are transferred among the banks issuing the credit cards.
10-1

23. Worked Together & OYO
P. 284
10-1

24. LESSON 10-1 Recording Transactions Using a General Journal
4/17/2017
LESSON 10-3
Recording Transactions Using a General Journal

25. New Vocabulary
Sales return: Credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor’s accounts receivable
Sales allowance: Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor’s accounts receivable
Credit memorandum: A form prepared by the vendor showing the amount deducted for returns and allowances
10-1

26. CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES
page 285
10-1

27. JOURNALIZING SALES RETURNS AND ALLOWANCES
page 286
March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $ Credit Memorandum No. 41.
10-1

28. Audit Your Understanding
What is the difference between a sales return and a sales allowance?
A sales return is credit allowed a customer for the sales price of returned merchandise;
A sales allowance is credit allowed a customer for part of the sales price of merchandise that is not returned.
What is a source document for journalizing sales returns and allowances?
Credit memorandum
10-1

29. Work Together & OYO
P. 287
10-1

30. Enjoy the Show…
10-1

58. Preschooler Test
I already knew I was dumber than the fifth graders...but now it's the preschoolers.

59. Which way is the bus below traveling? To the left or to the right?
10-1

60. Look carefully at the picture again.
Can't make up your mind?
Look carefully at the picture again.
Still don't know?
10-1

61. 90% of the pre-schoolers gave this answer:
Pre-schoolers all over the United States were shown this picture and asked the same question.
90% of the pre-schoolers gave this answer:
"The bus is traveling to the left.."
10-1

62. "Because you can't see the door to get on the bus.“
When asked, "Why do you think the bus is traveling to the left?“ They answered:
"Because you can't see the door to get on the bus.“
10-1

63. The End
10-1