Presentation on theme: "Journalizing Sales and Cash Receipts Using Special Journals."— Presentation transcript:
Journalizing Sales and Cash Receipts Using Special Journals
A special journal used to record only sales of merchandise on account
A cash discount on sales taken by a customer.
The report that summarizes the cash and credit card sales of a point-of-sale terminal
A sale in which a credit card is used for the total amount of the sale at the time of the transaction
A special journal used to record only cash receipt transactions
A form prepared by the vendor showing the amount deducted for returns and allowances
A computer used to collect, store, and report all the information of a sales transaction
The process of preparing a batch report of credit card sales from a point-of-sale terminal
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.
A report of credit card sales produced by a point-of-sale terminal
TRUE or FALSE? When cash is received for a sale on account within the discount period, the amount credited to Accounts Receivable is reduced by the amount of the discount.
TRUE or FALSE? Regardless of when merchandise is sold, revenue should be recorded when cash is received.
TRUE or FALSE? Point-of-sale terminals use UPC symbols to obtain the description and price of merchandise sold.
TRUE or FALSE? Because Sales Discount is a contra account to Sales, it has a normal credit balance.
TRUE or FALSE? Purchases and sales of merchandise are the two major activities of a merchandising business.
TRUE or FALSE? Cash is proved when the total of the Cash Debit column of a cash receipts journal equals the next unused check stub.
TRUE or FALSE? A terminal summary reports total cash and credit card sales of a point-of-sale terminal.
TRUE or FALSE? When a customer is granted credit for merchandise returned, Accounts Receivable is debited.
TRUE or FALSE? The amount of sales tax collected is an asset of the business until paid to the state government.
Using a terminal summary as a source document for weekly cash and credit card sales is an application of the accounting concept. Business Entity Matching Expenses with Revenue Realization of Revenue Objective Evidence
The amount of cash received for a sale on account of $1, plus sales tax of $80 when the cash is received within the 2 percent discount period is
Sales Returns and Allowances is: A contra expense account An expense account A revenue account A contra Revenue Account
Sales invoices should be Numbered in sequence Used as source documents for sales on account Prepared in triplicate All of the above
The amount of sales tax on a sale is calculated as the price of goods Plus the sales tax rate Divided by the sales tax rate Minus the sales tax rate Times the sales tax rate
For a sale on account of $1, plus sales tax of $80.00, the amount recorded in the Accounts Receivable Debit column of a sales journal is $1, $ $80.00 $1,080.00
When merchandise is sold on account and sales tax is also collected, The sales tax is not reported Sales is debited for the price of the goods. Accounts Receivable is credited for the total sale and sales tax The accounts receivable account balance is increased.
Sales discounts are recorded in Batch Report General Journal Sales Journal Cash Receipts Journal