2. The sales journal is used to record credit sales of merchandise
The sales journal is used to record credit sales of merchandise. The cash receipts journal is used to record the cash a business receives.
Glencoe Accounting
Glencoe Accounting
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3. Record transactions in sales and cash receipts journals.
Identify the special journals and explain how they are used in a merchandising business.
Record transactions in sales and cash receipts journals.
Post from the sales and cash receipts journals to customer accounts in the accounts receivable subsidiary ledger.
Foot, prove, total, and rule the sales and cash receipts journals.
Post column totals from the sales and cash receipts journals to general ledger accounts.
Prepare a schedule of accounts receivable.
Glencoe Accounting
Glencoe Accounting
Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4. Key Terms special journals sales journal footing Section 16.1
The Sales Journal
Key Terms
special journals
sales journal
footing
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5. Using Special Journals
Section 16.1
The Sales Journal
Sales Journal
Sale of merchandise on account
Most Commonly Used Special Journals
Cash Receipts Journal
Receipt of cash
Purchases Journal
Purchase of any asset on account
Cash Payments Journal
Payment of cash, including payment by check
special journals
Journals that have amount columns for recording debits and credits to specific general ledger accounts.
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6. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Sales Journal
See page 454
sales journal
A special journal used to record only the sale of merchandise on account.
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7. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Recording Sales of Merchandise on Account
Business Transaction
On December 1 The Starting Line sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50.
See page 454
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8. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger
See page 456
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9. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
The Sales Credit
Posted Column Totals for the Sales Journal
The Sales Tax Payable Credit
The Accounts Receivable Debit
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10. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Footing, Proving, Totaling, and Ruling the Sales Journal
footing
A column total written in small pencil figures.
See page 457
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11. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Posting the Total of the Sales Credit Column
See page 458
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12. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Posting the Total of the Sales Tax Payable Credit Column
See page 458
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13. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Posting the Total of the Accounts Receivable Debit Column
See page 459
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14. Journalizing and Posting to the Sales Journal
Section 16.1
The Sales Journal
Proving the Sales Journal at the End of a Page
Sometimes the transactions will not fit on a single page. When this occurs, the journal page must be totaled and ruled before a new page is started.
See page 460
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15. Key Terms cash receipts journal schedule of accounts receivable
The Cash Receipts Journal
Section 16.2
Key Terms
cash receipts journal
schedule of accounts receivable
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16. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
The Cash Receipts Journal
See page 462
cash receipts journal
A special journal used to record all transactions in which cash is received.
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17. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Recording Cash from Charge Customers
Business Transaction
On December 5 The Starting Line received $212 from Casey Klein to apply on account, Receipt 301.
See page 463
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18. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Recording Cash Received on Account, Less a Cash Discount
Business Transaction
On December 12 The Starting Line received $1,470 from South Branch High School Athletics in payment of Sales Slip 51 for $1,500 less the discount of $30, Receipt 302.
See page 464
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19. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Recording Cash Sales
Business Transaction
On December 15 The Starting Line records the cash sales for the first two weeks of December, $3,000, and $180 in related sales taxes, Tape 55.
See page 464
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20. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Recording Bankcard Sales
Business Transaction
On December 15 The Starting Line recorded bankcard sales of $700 for the first two weeks of December and related sales taxes of $42, Tape 55.
See page 465
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21. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Recording Other Cash Receipts
Business Transaction
On December 16 The Starting Line received $30 from Mandy Harris, an office employee. She purchased a calculator that the business was no longer using, Receipt 303.
See page 466
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22. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Posting to the Accounts Receivable Subsidiary Ledger
See page 466
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23. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Posting to the General Credit Column
See page 467
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24. Journalizing and Posting to the Cash Receipts Journal
Section 16.2
Posting Column Totals to the General Ledger
See page 469
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25. Using the Schedule of Accounts Receivable
The Cash Receipts Journal
Section 16.2
To prove the accounts receivable subsidiary ledger, accountants prepare a schedule of accounts receivable.
schedule of accounts receivable
A list of each charge customer, the balance in the customer’s account, and the total amount due from all customers.
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26. Using the Schedule of Accounts Receivable
The Cash Receipts Journal
Section 16.2
Failing to Post a Transaction
Possible Errors in the Subsidiary Ledger
Miscalculating an Account Balance
Proving the accounts receivable subsidiary ledger does not ensure that transactions were posted to the correct customer account.
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27. Steps must be taken to make sure online sales transactions are secure.
Internet Sales
The Cash Receipts Journal
Section 16.2
Use an Internet merchant account for credit and debit card payments or an online payment service.
Internet
Sales
Steps must be taken to make sure online sales transactions are secure.
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28. General Credit __________ Sales Credit __________
Question 1
Use (T) to indicate whether you would post only the column total, (E) to post each individual transaction, or (B) to post each to the subsidiary ledger and the column total to the controlling account in the general ledger.
General Credit __________
Sales Credit __________
Sales Tax Payable Credit __________
Accounts Receivable Credit __________
Sales Discounts Debit __________
Cash in Bank Debit __________ E T T B T T
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29. Question 2
A company has the following journals and ledgers: sales, cash receipts, purchases, cash payments, general, and an accounts receivable subsidiary ledger. For each of the following transactions, indicate (a) the correct journal and (b) whether the subsidiary ledger is used.
sale for cash
sale on credit
payment of accounts payable
purchase of equipment on credit
cash receipt on account from customer
sales for customers using bankcards
cash received for sale of unneeded equipment
cash discount taken on account by customer
(a) cash receipts
(a) sales (b) A/R subsidiary ledger
(a) cash payments
(a) purchases
(a) cash receipts (b) A/R subsidiary ledger
(a) cash receipts
(a) cash receipts
(a) cash receipts (b) A/R subsidiary ledger
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30. Question 3
In the cash receipts journal, why must you post every payment on account to the customer’s subsidiary account immediately?
Most of the information in the cash receipts journal can be posted when you total the journal. However, the subsidiary ledger must be kept current and show the accurate amount owed by each customer in the event a customer inquires about his or her account status or that the current total is needed for some other reason. This also means that until the column total is posted to the controlling account, the total of the subsidiary ledger accounts and the controlling account in the general ledger will not agree.
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31. End of