1. 0 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 14, Section 3 Analyzing Cash Receipt Transactions What Do You Think? What are the main sources of cash receipts?

2. 1 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Main Idea Merchandising businesses receive cash from cash sales, payments on account, bankcard sales, and occasionally from other types of transactions. You Will Learn  how and why businesses receive cash.  how to calculate a cash discount.  how to record cash receipts. Analyzing Cash Receipt Transactions SECTION 14.3

3. 2 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms  cash receipt  cash sale  cash discount  sales discount Analyzing Cash Receipt Transactions SECTION 14.3

4. 3 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Cash Transactions A cash receipt is a transaction in which money is received by a business. The most common sources of cash are payments for cash sales, charge sales, and bankcard sales. Analyzing Cash Receipt Transactions SECTION 14.3

5. 4 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Cash Sales In a cash sale, a business gets full payment at the time of the sale. Cash sales are recorded on two tapes, one copy is torn off and given to the customer and the other is kept in the register. The register tape lists the total cash sales and the total sales tax collected. Analyzing Cash Receipt Transactions SECTION 14.3

6. 5 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Charge Customer Payments Businesses record cash received on account from charge customers on prenumbered receipts. Analyzing Cash Receipt Transactions SECTION 14.3

7. 6 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Bankcard Sales Banks can issue both credit and debit cards. These bankcards can be processed manually or electronically. Sales paid by bankcard are recorded in a manner similar to cash sales. The source document for bankcard sales is the cash register tape. Analyzing Cash Receipt Transactions SECTION 14.3

8. 7 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Other Cash Receipts Merchants can also receive cash from bank loans or the sale of assets. A receipt indicates the source of the cash received. Analyzing Cash Receipt Transactions SECTION 14.3

9. 8 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Cash Discounts A cash discount, or sales discount, is sometimes offered to charge customers to encourage prompt payment. Cash discounts are not typically offered to all customers. Analyzing Cash Receipt Transactions SECTION 14.3

10. 9 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Recording Cash Receipts This section shows examples of how to record cash receipts from four sources:  charge customer payments  cash discount payments  cash sales  bankcard sales Analyzing Cash Receipt Transactions SECTION 14.3

11. 10 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Charge Customer Payments Analyzing Cash Receipt Transactions SECTION 14.3

12. 11 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Charge Customer Payments Analyzing Cash Receipt Transactions SECTION 14.3

13. 12 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Cash Discount Payments Analyzing Cash Receipt Transactions SECTION 14.3

14. 13 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Cash Discount Payments Analyzing Cash Receipt Transactions SECTION 14.3

15. 14 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Cash Sales Analyzing Cash Receipt Transactions SECTION 14.3

16. 15 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Bankcard Sales Analyzing Cash Receipt Transactions SECTION 14.3

17. 16 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Other Cash Receipts Sometimes a business receives cash from a transaction that does not involve the sale of merchandise. Analyzing Cash Receipt Transactions SECTION 14.3

18. 17 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. SECTION 14.3 Accounting for Sales and Cash Receipts All of the transactions in the chapter are journalized here. Analyzing Cash Receipt Transactions

19. 18 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms  cash receipt The cash received by a business in a single transaction.  cash sale A transaction in which the business received full payment for the merchandise sold at the time of the sale. Analyzing Cash Receipt Transactions SECTION 14.3

20. 19 Glencoe Accounting Unit 4 Chapter 14 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. Key Terms  cash discount The amount a customer can deduct from the total owed for purchased merchandise if payment is made within a certain time; also called sales discount.  sales discount See cash discount. Analyzing Cash Receipt Transactions SECTION 14.3