LESSON 10-1 Journalizing Sales on Account Using a Sales Journal 6/27/2018 LESSON 10-1 Journalizing Sales on Account Using a Sales Journal

Journalizing Sales on Account page 270 Customer - a person or business to whom merchandise or services are sold. Sales tax – A tax on the sale of merchandise or services. They are usually a percentage of sales. The sales tax is a liability that must be paid to the government agency that collects it. LESSON 10-1

SALES TAX page 270 LESSON 10-1

SALES OF MERCHANDISE ON ACCOUNT page 271 LESSON 10-1

SALES JOURNAL page 272 Concept: Realization of Revenue – Revenue is recorded at the time goods or services are sold, regardless of when payment is made. LESSON 10-1

SALES INVOICE page 272 LESSON 10-1

SALES JOURNAL page 272 Hobby Shack operates in a state with a 6% sales tax rate Price of goods x sales tax rate = sales tax $540 x 6% (.06) = $32.40 Price of goods + sales tax = Total amount $540 + $32.40 = $572.40 LESSON 10-1

SALE ON ACCOUNT page 273 November 3. Sold merchandise on account to Village Crafts, $540.00, plus sales tax, $32.40; total, $572.40. 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. LESSON 10-1

TOTALING, PROVING, AND RULING A SALES JOURNAL page 274 LESSON 10-1

TERMS REVIEW page 275 customer sales tax sales journal LESSON 10-1

Journalizing Cash Receipts Using a Cash Receipts Journal LESSON 10-2 Journalizing Cash Receipts Using a Cash Receipts Journal

PROCESSING SALES TRANSACTIONS page 277 Cash Register Receipt UPC (Universal Product Code) Point-of-Sale (POS) Terminal Receipt (continued on next slide) LESSON 10-2

PROCESSING SALES TRANSACTIONS page 277 Terminal Summary Batch Report (continued from previous slide) LESSON 10-2

CASH RECEIPTS JOURNAL page 278 Sales discount – a cash discount taken by the customer to pay less than the invoice amount. This will reduce the amount of cash Hobby Shack receives on sales on account. LESSON 10-2

CASH AND CREDIT CARD SALES page 279 November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5,787.60. Terminal Summary 34. 2 4 1 3 5 6 7 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. LESSON 10-2

CASH RECEIPTS ON ACCOUNT page 280 November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90. 1 2 3 4 5 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. LESSON 10-2

JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS page 281 To encourage prompt payment, Hobby Shack give credit terms of 2/10, n/30. When customer pays the amount owed within 10 days, the sales invoice amount is reduced 2%. Sales invoice x Sales Discount rate = Sales discount $1200 x 2% (.02) = $24.00 Acc. Rec - Sales Disc. = Cash $1200 - $24.00 = $1176 LESSON 10-1

JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS page 282 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. 1 2 3 4 5 6 1. Write the date. 4. Write the original invoice amount. 2. Write the customer’s name. 5. Write the amount of sales discount. 3. Write the receipt number. 6. Write the debit to cash. LESSON 10-2

TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL page 283 LESSON 10-2

TERMS REVIEW cash sale credit card sale point-of-sale (POS) terminal page 284 cash sale credit card sale point-of-sale (POS) terminal terminal summary batch report batching out cash receipts journal sales discount LESSON 10-2

LESSON 10-3 Recording Transactions Using a General Journal 6/27/2018 LESSON 10-3 Recording Transactions Using a General Journal

CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES page 285 LESSON 10-3

JOURNALIZING SALES RETURNS AND ALLOWANCES page 286 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. 2 4 1 3 5 6 9 8 7 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. LESSON 10-3

TERMS REVIEW sales return sales allowance credit memorandum page 287 LESSON 10-3