1. LESSON 10-2 Journalizing Sales & Cash Receipts Using Special Journals
CHAPTER 10
4/21/2017
Journalizing Sales & Cash Receipts
Using Special Journals
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2. 10-1 JOURNALIZING SALES ON ACCOUNT USING A SALES JOURNAL
LESSON 10-2
10-1 JOURNALIZING SALES ON ACCOUNT USING A SALES JOURNAL
4/21/2017
page 270
A tax on the sale of merchandise is called Sales Tax
Stated as a percentage.
Need accurate records of (1)total sales (2)total sales tax collected.
The amount of sales tax collected is a liability until paid to the
the government agency.
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3. SALES OF MERCHANDISE ON ACCOUNT
LESSON 10-2
4/21/2017
SALES OF MERCHANDISE ON ACCOUNT
page 271
A sale of merchandise may be (1) on account or (2) for cash.
A sale of merchandise increases revenue.
Revenue is recorded at time of sale
NOT when cash is received.
A sale for which cash will be received
at a later date is known as a sale on
account or charge sale.
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4. LESSON 10-2
4/21/2017
SALES JOURNAL
page 272
A sales journal is a special journal used ONLY to record sales of merchandise on account.
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5. SALES INVOICE A source document for sales on account
LESSON 10-2
4/21/2017
SALES INVOICE A source document for sales on account
page 272
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6. LESSON 10-2
4/21/2017
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. 1 2 3 4 5 6
1. Write the date.
2. Write the customer name.
3. Write the sales invoice number.
4. Write the total amount owed by the customer.
5. Write the sales amount.
6. Write the sales tax amount.
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7. TOTALING, PROVING, AND RULING A SALES JOURNAL
LESSON 10-2
TOTALING, PROVING, AND RULING A SALES JOURNAL
4/21/2017
page 274
At the end of each month Hobby Shack totals, proves, and rules its sales journal. Prove and rule just like all other journals.
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8. 10-2 JOURNALIZING CASH RECEIPTS USING A CASH RECEIPTS JOURNAL
LESSON 10-2
4/21/2017
10-2 JOURNALIZING CASH RECEIPTS USING A CASH RECEIPTS JOURNAL
pages
Processing Sales Transactions
A sale in which cash is received for the total amount of the sale at the time of the transaction is called a cash sale.
If a credit card is used it is called a charge sale.
Point-of-Sale (POS) Terminal Receipt
Cash Register Receipt
A computer used
to collect, store,
and report all info
of a sales trans.
is a POS terminal.
UPC (Universal Product Code)
Is scanned in into POS terminal
(continued on next slide)
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9. PROCESSING SALES TRANSACTIONS
LESSON 10-2
4/21/2017
PROCESSING SALES TRANSACTIONS
page 277
Terminal Summary
Batch Report
Summarizes cash
& credit card sales
of a point of sale
terminal.
A report of credit
card sales produced
by a POS terminal.
(continued from previous slide)
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10. LESSON 10-2
4/21/2017
CASH RECEIPTS JOURNAL
page 278
A cash receipts journal is a special journal used ONLY to record
cash receipt transactions.
To encourage early payment Hobby Shack allows customers who pay
early to take a deduction from the invoice amount called a sales discount.
Customer pays less than invoice amount that was recorded in sales account.
Sales discounts reduce the amount of cash HS receives on sales on account.
Use special amount columns to record.
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11. CASH AND CREDIT CARD SALES
LESSON 10-2
4/21/2017
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. 2 4 1 3 5 6 7
1. Write the date.
2. Place a check mark in the Account Title column.
3. Write the terminal summary document number.
4. Place a check mark in the Post. Ref. column.
5. Write the sales amount.
6. Write the sales tax amount.
7. Write the cash amount.
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12. CASH RECEIPTS ON ACCOUNT
LESSON 10-2
4/21/2017
CASH RECEIPTS ON ACCOUNT
page 280
November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90. 1 2 3 4 5
1. Write the date.
2. Write the customer’s name.
3. Write the receipt number.
4. Write the credit amount.
5. Write the debit amount.
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13. JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS
LESSON 10-2
4/21/2017
JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS
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. 1 2 3 4 5 6
1. Write the date.
4. Write the original invoice amount.
2. Write the customer’s name.
5. Write the amount of sales discount.
3. Write the receipt number.
6. Write the debit to cash.
$1, x 2% = $24 sales discount
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14. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
LESSON 10-2
4/21/2017
TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
page 283
At the end of each month Hobby Shack totals, proves, and rules its cash receipts journal. Prove and rule just like all other journals.
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15. 10-3 RECORDING TRANSACTIONS USING A GENERAL JOURNAL
LESSON 10-2
4/21/2017
10-3 RECORDING TRANSACTIONS USING A GENERAL JOURNAL
page 285
Credit Memorandum for Sales Returns & Allowances
Sales Return - Credit allowed for the sales price of returned merchandise, resulting in a decrease in the vendor’s account receivable.
Sales Allowance - Credit allowed for part of the sales price of
merchandise that is not returned, decreasing vendor’s accounts
receivable.
Credit Memo- source doc.
prepared by vendor showing
amount deducted for returns
and allowances.
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16. JOURNALIZING SALES RETURNS AND ALLOWANCES
LESSON 10-2
4/21/2017
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. 2 4 1 3 5 6 9 8 7
1. Write the date.
6. Write the sales tax amount.
2. Write Sales Returns and Allowances.
7. Write the accounts to be credited.
3. Write CM and the credit memorandum number.
8. Draw a diagonal line in the Post. Ref. column.
4. Write the amount of the sales return.
9. Write the total accounts receivable amount.
5. Write Sales Tax Payable.
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