CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1 Departmental Sales on Account and Sales Returns and Allowances

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 2-1 June 1. Sold audio equipment on account to Kim Electronics, $280.00, plus sales tax, $23.10; total, $ Sales Invoice No Write the date. 5.Write the sales tax payable amount. 4.Write the total invoice amount. 3.Write the sales invoice number. 2.Write the customer name. 6.Write the sales amount. JOURNALIZING SALES ON ACCOUNT page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON Enter account balance. 3.Enter amount in Debit column. 2.Write sales journal page. 1.Write date. 5.Write customer number in Post. Ref. column of sales journal. POSTING FROM A SALES JOURNAL TO THE ACCOUNTS RECEIVABLE LEDGER page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON Enter debit amount. 2.Write sales journal page. 4.Enter account balance.1.Write date. 5.Write general ledger account number in parentheses. POSTING FROM A SALES JOURNAL TO A GENERAL LEDGER ACCOUNT page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 2-1 June 5. Granted credit to Kim Electronics for audio equipment returned, $130, plus sales tax, $10.73, from Sales Invoice No. 101; total, $ Credit Memo No. 43. JOURNALIZING SALES RETURNS AND ALLOWANCES page 40 3.Record credit memo number. 4.Write debit amounts. 1.Write date. 2.Enter accounts to be debited. 5.Enter accounts to be credited. 6.Draw diagonal line Write credit amount. 1 7

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 2-1 POSTING FROM GENERAL JOURNAL page 41 2.Journal page number 1.Date 5.Account numbers 3.Debit amounts 4.Credit amount

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 2-1 TERM REVIEW credit memorandum – form used as source document for sales customer returns to you. page 43

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-2 Journalizing and Posting Cash Receipts

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 2-2 DEPARTMENTAL CASH RECEIPTS 8.25% Sales TaxSales AmountTotal Invoice Amount+ = $1, = $1,840.25$ Discount RateInvoice AmountSales Discount× = $1, × = $36.812% 2% Sales DiscountTotal Invoice AmountAmount Due in 10 Days– = $1, – = $1,803.44$36.81 Terms: 2/10, n/30 Invoice paid within 10 days: page 44

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON Write the sales discount debit amount. June 1. Received cash on account from Olympic Productions, $1,803.44, covering Sales Invoice No. 96 for audio equipment for $1, ($1, plus sales tax, $140.25), less 2% discount, $ Receipt No Write the date. 1 3.Record the receipt number. 3 4.Write the accounts receivable credit amount. 4 2.Write the customer name. 2 6.Write the cash debit amount. 6 JOURNALIZING A CASH RECEIPT WITH A SALES DISCOUNT page 45

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 2-2 June 8. Received cash on account from Kim Electronics, $159.12, covering Sales Invoice No. 101 for $ ($ plus sales tax, $23.10), less Credit Memorandum No. 43 for $ ($ plus sales tax, $10.73), less 2% discount, $3.25. Receipt No Write the sales discount debit amount. 1.Write date. 3.Record receipt number. 4.Write the account receivable credit amount. 2.Write the customer name. 6.Write the cash debit amount. JOURNALIZING A CASH RECEIPT WITH A SALES RETURN AND A SALES DISCOUNT page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON Date 3.Cash register tape number 4.Check mark in Post. Ref. column 2.Check mark in Account Title column 7.Cash debit amount June 11. Recorded cash and credit card sales, audio equipment, $4,370.00; video equipment, $6,280.00; plus sales tax, $878.63; total $11, Terminal Summary No Sales tax payable credit amount 6.Sales credit amounts JOURNALIZING CASH AND CREDIT CARD SALES page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 13 LESSON Column totals are posted to the account named in the column heading. 1.Individual amounts are posted to the accounts receivable ledger. POSTING FROM A CASH RECEIPTS JOURNAL page

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 14 LESSON 2-2 ORDER OF POSTING FROM JOURNALS Sales journal Purchases journal General journal Cash receipts journal Cash payments journal page 49

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 15 LESSON 2-2 TERMS REVIEW sales discount – discount offered to a customer to encourage prompt payment point-of-sale (POS) terminal – computer used to collect, store and report all information of a sales transactions terminal summary – The report that summarizes the cash and credit card sales of a point of sale terminal page 50