1. Journalizing Sales and Cash Receipts Using Special Journals
Chapter 10, Section 1

2. Review Special Journals
What kind of transactions are recorded in each special journal?
Purchases
Cash Payments
Sales
Cash Receipts
What is the difference between a special amount column and a general amount column?

3. Sales on Account Customer – person who buys merchandise or services
Sales Tax – tax on sale of merchandise or services; required by most states and some cities
Stated as a percentage of sales
Collected by business then paid to gov’t agency
Sales tax is recorded as a liability.
Sales Tax Payable
Credit
Normal Balance  

4. Sales of Merchandise on Account
What accounts are affected and how?
Debit or credit?
What is the source document?
What journal?
Accounts Receivable/
Customer Name
Sales
Sales Tax Payable
Credit
Normal Balance
Debit
Normal Balance
Credit
Normal Balance   

5. Sales Invoice

6. Sales Journal
CONCEPT: Realization of Revenue Revenue is recorded at the time goods or services are sold.

7. Recording a Sale on Account
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.

8. Totaling, Proving, and Ruling
At the end of each month, sales journal must be totaled, proved and ruled.

9. Problems Work Together 10-1 (Text pg. 275)
On Your Own 10-1 (Text pg. 275)
Application 10-1 (Text pg. 289)
Study Guide 10