CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 10-2 Journalizing Cash Receipts Using a Cash Receipts Journal  Processing sales transactions and credit cards  Cash receipts journal  Cash and credit card sales  Cash receipts on account  Cash receipts on account with sales discount  Totaling, proving, and ruling a cash receipts journal  Proving cash at the end of a month

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Competency: Understanding the Accounting Cycle for a Merchandising Business 2 LESSON 10-2 Objectives: 58 Record sales transactions for a merchandising business 59 Identify special journals and their uses 60 Journalize taxable and non-taxable sales transactions 63 Prepare customer invoices for a merchandising business 64 Receive vendor invoices for a merchandising business 71 Summarize the progression from source documents to journals to ledgers to financial reports for a merchandising business 72 Describe record/organization and retention-schedule procedure for a merchandising business

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 10-2 PROCESSING SALES TRANSACTIONS pages UPC (Universal Product Code) Cash Register Receipt Point-of-Sale (POS) Terminal Receipt (continued on next slide)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 10-2 PROCESSING SALES TRANSACTIONS page 277 Terminal Summary Batch Report (continued from previous slide)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 10-2 CASH RECEIPTS JOURNAL page 278

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 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, Terminal Summary 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. 7

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 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 Write the date. 2.Write the customer’s name. 3.Write the receipt number. 4.Write the credit amount. 5.Write the debit amount.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 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, $ Receipt No Write the original invoice amount.1.Write the date. 2.Write the customer’s name. 3.Write the receipt number. 5.Write the amount of sales discount. 6.Write the debit to cash.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 10-2 TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL page 283

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 10-2 TERMS REVIEW cash sale credit card sale point-of-sale (POS) terminal terminal summary batch report batching out cash receipts journal sales discount page 284