1. Journalizing Sales and Cash Receipts Using Special Journals
Chapter 11
Journalizing Sales and Cash Receipts Using Special Journals

2. Sales Tax
Customer: a person or business to whom merchandise or services is sold
Sales Tax: tax on the sale of merchandise or services
Businesses must file reports regarding sales tax
Sales Tax= Price * Sales Tax %
Total= Price + Sales Tax

3. 11.1 Sales Journal- Merchandise on Account
Realization of Revenue- when revenue is recorded at the time goods or services are sold
Sale on account- aka: charge sale
Sales Journal- Sales of Merchandise on Account only

4. Sales Invoice AKA: sales ticket or sales slip Seller- sales invoice
Customer- purchase invoice

5. Sale on Account
November 3. Sold merchandise on account to Children’s Paradise, $816.00, plus sales tax, $ Sales invoice #76
Journalize:
Date, Account Name, Sale #
Total Amount-A/R Debit
Sales Credit-Merchandise Amount
Sales Tax Credit-Amount of Tax

6. Totaling Sales Jounral
At the end of the month- prove, rule, total Sales journal
Debits Columns=Credits Columns

7. 11. 1 REVIEW p. 258 Terms Review Audit Your Understanding #1- 4
Work Together #5-6
On Your Own #7-8

8. 11.2 Cash Receipts Journal
Cash Sale- sale where cash is received
Credit Card Sale- sale using a credit card

9. Cash Receipts Journal
Cash Receipts Journal- Record only cash receipt transactions (cash or cc)

10. Cash and Credit Cards
November 3. Recorded cash and credit card sales, $5,460, plus tax $327.60; total $ Cash Register Tape #4
To Journalize:
Date, Check Mark (no account name needed), Doc #
Credit Sales and Sales Tax
Debit Cash- Total of Sales and Tax

11. Cash Receipts on Account
November 6. Received cash on account from Fiesta Costumes, $2,162.40, covering S69. R90.
To Journalize:
Date, Account Title (A/R), Doc #
Credit (A/R- decreasing their balance)
Debit Cash- Increasing Cash

12. Totaling & Proving
Follow the same procedures as the Cash Payments Journal
Debit Columns= Credit Columns
Double Lines show columns prove and are verified!

13. Proving Cash Prove Cash at the end of each month To Calculate:
Cash on hand at start of month
+ Total Cash Received (Cash Debit)
=Total
- Cash Paid (Cash Credit-Cash Payments)
=Cash Balance on Hand at end of Month
This total should prove to checkbook balance on next unused check stub

14. 11.2 REVIEW: p. 264 Terms Review Audit Your Understanding #1- 3
Work Together #4-7
On Your Own #8-11

15. Chapter 11 Review Application Problems 11.1- 11.2
Test Wednesday March 2.

16. THE END