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0 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16 Special Journals: Sales and Cash Receipts What You’ll Learn Identify the special journals and explain how they are used in a merchandising business. Record transactions in sales and cash receipts journals. Post from the sales and cash receipts journals to customer accounts in the accounts receivable subsidiary ledger. Foot, prove, total, and rule the sales and cash receipts journals. Post column totals from the sales and cash receipts journals to general ledger accounts.
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1 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16 Special Journals: Sales and Cash Receipts What You’ll Learn Prepare a schedule of accounts receivable. Define the accounting terms introduced in this chapter.
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2 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 16, Section 1 The Sales Journal What Do You Think? What other terms mean the same as credit sales?
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3 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Main Idea The sales journal is used to record credit sales of merchandise. You Will Learn the purpose of special journals. how to use the sales journal. The Sales Journal SECTION 16.1
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4 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms special journals sales journal footing The Sales Journal SECTION 16.1
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5 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Using Special Journals Each transaction in a general journal requires at least three journal lines. To improve efficiency merchandising businesses can use special journals. Special journals have amount columns used to record debits and credits to general ledger accounts. The four most commonly used special journals are: sales journal, cash receipts journal, purchases journal, and cash payments journal. The Sales Journal SECTION 16.1
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6 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Journalizing and Posting to the Sales Journal The sales journal is used to record sales of merchandise on account. The Sales Journal SECTION 16.1
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7 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Sales of Merchandise on Account To record transactions in the sales journal, move from left to right following these steps: Enter the sales slip date in the Date column. Enter the sales slip number is the Sales Slip No. column. Enter the customer’s name in the Customers Account Debited column. Enter the merchandise sold total in the Sales Credit column. Enter the sales tax in the Sales Tax Payable Credit column. Enter the total amount to be received in the Accounts Receivable Debit column. The Sales Journal SECTION 16.1
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8 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger To post transactions to the accounts receivable subsidiary ledger, follow these steps: 1.Enter the transaction date in the Date column. 2.Enter the journal letter and page number in the Posting Reference column. 3.Enter the total amount to be received in the Debit column. 4.Compute the new balance and enter it in the Balance column. 5.Place a check mark in the Posting Reference column in the sales journal. The Sales Journal SECTION 16.1
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9 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger The Sales Journal SECTION 16.1
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10 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Completing the Sales Journal Only the amount column totals from the special journals are posted to the general ledger accounts. For the sales journal, the column totals posted are the Sales Credit, the Sales Tax Payable Credit, and the Accounts Receivable Debit. The Sales Journal SECTION 16.1
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11 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Sales Journal Verify the column totals before posting them to the general ledger by following these steps: 1.Draw a single rule across the three amount columns, below the last transaction. 2.Foot the amount columns. Footing is a column total written in small penciled figures. 3.On separate paper, verify the debit column total equals the total of the two credit columns. 4.Enter the date in the Date column below the single rule. The Sales Journal SECTION 16.1
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12 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Sales Journal 5.Enter the word Totals on the same line in the Customer’s Account Debited Column. 6.Enter the column totals below the footings. 7.Double-rule the three amount columns. The Sales Journal SECTION 16.1
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13 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Footing, Proving, Totaling, and Ruling the Sales Journal The Sales Journal SECTION 16.1
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14 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Credit Column Follow this procedure for posting the Sales Credit column to the general ledger Sales account: 1. In the Date column, enter the date from the Totals line of the sales journal. 2. Enter the sales journal letter and page number in the Posting Reference column. 3. Enter the total from the Sales Credit column of the sales journal in the Credit column. 4. Compute the new balance and enter it in the Credit Balance column. The Sales Journal SECTION 16.1
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15 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Credit Column 5. In the sales journal, enter the Sales account number, in parentheses, below the double rule in the Sales Credit column. The Sales Journal SECTION 16.1
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16 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Tax Payable Credit Column Follow this procedure for posting the total of the Sales Tax Payable Credit column: 1. In the Date column of the Sales Tax Payable account, enter the date from the Totals line of the sales journal. 2. Enter the sales journal letter and page number in the Posting Reference column. 3. Enter the total from the Sales Tax Payable Credit column of the sales journal in the Credit column. 4. Compute the new balance and enter it in the Credit Balance column. The Sales Journal SECTION 16.1
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17 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Sales Tax Payable Credit Column 5. In the sales journal, enter the Sales Tax Payable account number, in parentheses, below the double rule in the Sales Tax Payable Credit column. The Sales Journal SECTION 16.1
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18 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Accounts Receivable Debit Column Follow this procedure for posting the total of the Accounts Receivable Debit column: 1.In the Date column of the Accounts Receivable account, enter the date from the Totals line of the sales journal. 2.Enter the sales journal letter and page number in the Posting Reference column. 3.Enter the total from the Accounts Receivable Debit column of the sales journal in the Debit column. 4.Compute the new balance and enter it in the Debit Balance column. The Sales Journal SECTION 16.1
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19 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Posting the Total of the Accounts Receivable Debit Column 5.In the sales journal, enter the Accounts Receivable account number, in parentheses, below the double rule in the Accounts Receivable Debit column. The Sales Journal SECTION 16.1
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20 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Proving the Sales Journal at the End of a Page Sometimes the transactions will not fit on a single page. When this occurs, the journal page must be totaled and ruled before a new page is started. The Sales Journal SECTION 16.1
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21 Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms Review special journals Journals that have amount columns for recording debits and credits to specific general ledger accounts. sales journal A special journal used to record only the sale of merchandise on account. footing A column total written in small pencil figures. The Sales Journal SECTION 16.1
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