Journalizing Sales and Cash Receipts Using Special Journals Chapter 10 Journalizing Sales and Cash Receipts Using Special Journals

Sales tax and sales journal Customer – a person or business to whom merchandise or services are sold Sales tax – a tax on a sale of merchandise or services

Sales tax and sales journal Sales journal – a special journal used to record ONLY sales of merchandise on account

Sales tax and sales journal

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

Cash receipts and cash receipts journal Cash sale – sale in which cash is received for the total amount of the sale 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 Point-of-sale (POS) terminal – a computer used to collect, store, and report all the information of a sales transaction Terminal summary– a report that summarizes the cash and credit card sales of a point-of-sale terminal

PROCESSING SALES TRANSACTIONS LESSON 10-2 2/25/2019 PROCESSING SALES TRANSACTIONS pages 276- 277 UPC (Universal Product Code) Cash Register Receipt Point-of-Sale (POS) Terminal Receipt (continued on next slide) LESSON 10-2 Blue

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

Cash receipts and cash receipts journal Batch report – a report of credit card sales produced by a point-of-sale terminal Batching out – the process of preparing a batch report of credit card sales from a point-of-sale terminal

Cash receipts and cash receipts journal Cash receipts journal – a special journal used to record ONLY cash receipt transactions Sales discount – a cash discount on sales taken by a customer Sales discount

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 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

Credit memo and sales returns and allowances Sales return – credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the vendor’s accounts receivable Sales allowance – credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor’s accounts receivable Sales returns and allowances

Credit memorandum (CM) – a form prepared by the vendor showing the amount deducted for returns and allowances

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