Presentation on theme: " I will be responsible for knowing and understanding the following concepts: Accounting Terms Related to the sales and cash receipts journals Accounting."— Presentation transcript:
I will be responsible for knowing and understanding the following concepts: Accounting Terms Related to the sales and cash receipts journals Accounting Concepts and Practices related to the sales and cash receipts journals Journalize Sales on Account using a sales journal Journalize Cash Receipts using a cash receipts journal Recording Sales Returns and Allowances using a general journal I will be able to listen to my instructor and take notes, be an active participant as needed. I will complete the Workbook Assignments for 10-1
LESSON 9-1 2 Used to record similar types of transactions. If a transaction cannot be recorded in a special journal, the company records it in the general journal. Expanding the Ledger-Special Journals
What are some things that you buy when you go out shopping? What different factors affect the final price that YOU pay at the register?
NEW TERMS Customer: a person or business to whom merchandise or services are sold Sales tax: a tax on a sale, usually a percentage of sales -Every business collecting a sales tax needs accurate records of the amount of total sales and total sales tax collected. -The amount of sales tax collected is a business liability until paid to the government agency.
Sales Tax Payable – liability account where sales tax amounts are recorded. -A customer must pay the price of the goods PLUS the sales tax amount.
A Sale of merchandise is either on account (charge sale) or for cash. Concept: Realization of Revenue - Sales increase the revenue of a business and should be recorded at the time of sale. Accounts Receivable – a general ledger asset account used to summarize the total due from all charge customers.
Sales Journal – used to record only sales of merchandise ON ACCOUNT Sales Invoice – source document for recording a sale on account
123456 November 3. Sold merchandise on account to Village Crafts, $540.00, plus sales tax, $32.40; total, $572.40. Sales Invoice No. 76. 1. Write the date. 6. Write the sales tax amount. 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.
I will be responsible for knowing and understanding the following concepts: Accounting terms related to cash receipts for a merchandising business Accounting concepts as they relate to a cash receipts for a merchandising business Accounting practices as they relate to the Cash Receipts Journal I will be able to listen to my instructor and take notes, be an active participant as needed. I will complete 10-2 Workbook activities as assigned
What are the different ways you pay for products when you go to the store? What happens when you swipe your credit card? Do you know of any stores that do not accept credit cards? Why?
LESSON 9-1 15 Used to record similar types of transactions. If a transaction cannot be recorded in a special journal, the company records it in the general journal. Expanding the Ledger-Special Journals
Cash Sale – a sale in which cash is received for the total amount at the time of the transaction Credit card sale – a sale in which a credit card is used for the total amount of the sale at the time of the transaction ex. Visa, MasterCard, American Express - A customer who uses a credit card promises to pay the amount due for the transaction to the bank issuing the card - Merchandising businesses contract with a bank to process credit card sales and pay a percentage of those sales as a fee for credit card processing
A computer used to collect, store and report all the information of a sales transaction. Uses a scanning device to scan the Universal Product Code (UPC) symbol on the item. The POS stores the number, description, price and quantity on hand of each item of merchandise.
UPC (Universal Product Code) Cash Register Receipt – does NOT show information about what merchandise was sold Point-of-Sale (POS) Terminal Receipt – shows information (continued on next slide)
Terminal Summary – a report that summarizes cash and credit card sales, used as a source document for recording sales Batch Report – contains a summary of ONLY credit card sales Batching out – the process of preparing a batch report of credit card sales
Cash Receipts Journal – a special journal used to record only cash receipt transactions Sales Discount – a cash discount on sales taken by a customer, pays less than the invoice amount previously recorded.
1 2 3 4 56 November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5,787.60. Terminal Summary 34. 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. 7
12345 November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90. 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.
123456 November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sales Invoice No. 74 for $1,200.00, less 2% discount, $24.00. Receipt No. 91. 4.Write the original invoice amount.1.Write the date. 2.Write the customer’s name. 3.Write the receipt number. 5.Write the amount of sales discount. 6.Write the debit to cash.
Cash on hand at the beginning of the month $17,647.44 (Nov 1 balance of general ledger cash account) Plus total cash received during the month$38,668.80 (Cash debit column total, cash receipts journal) Equals total$56,316.24 Less total cash paid during the month$32, 901.40 (Cash credit column total, cash payments journal, Chapter 9) Equals cash balance on hand at the end of the month $23,414.84 Checkbook balance on the next unused check stub$23,414.84
cash sale credit card sale point-of-sale (POS) terminal terminal summary batch report batching out cash receipts journal sales discount page 284
Text BookWork Book WT284227 OYO284228 LESSON 10-227
I will be responsible for knowing and understanding the following concepts: Accounting terms related to the sales and cash receipts journals for a merchandising business Accounting practices as they relate to the sales and cash receipts journals Record sales returns and allowances using a general journal I will be able to listen to my instructor and take notes, be an active participant as needed. I will complete 10-3 Workbook activities as assigned
What can a customer do if they are dissatisfied with their purchase or if it damaged? What amount of money do we give back to them? What 2 types of transactions did we put in the general journal in the last chapter?
Sales Return – credit allowed a customer for the sales price of returned merchandise (plus tax) resulting in a decrease in A/R, AS WELL AS a decrease in sales tax. Sales Allowance – credit allowed a customer for PART of the sales price of merchandise (plus tax) that is NOT returned, resulting in a decrease in A/R AS WELL AS a decrease in sales tax. Credit Memorandum – a form prepared by the vendor showing the amount deducted for returns and allowances (source document) Sales Returns and Allowances is a contra account to Sales, has a normal debit balance.
Sales tax is listed separately and must be recorded as such in the transaction
1 2 3 4 6 March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $62.01. Credit Memorandum No. 41. 7 8 9 5 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. Sales tax is debited here because it was given back to the customer
Work Together 10-3: Text Page 287, Workbook Page 229 On Your Own 10-3: Text Page 287, Workbook Page 230
APPLICATION PROBLEM 10-2: Text Page 289-290, Workbook Page 232 APPLICATION PROBLEM 10-3: text Page 290, Workbook Page 233 LESSON 10-334