1. The Sales Journal Main Idea You Will Learn
SECTION 16.1
Main Idea
The sales journal is used to record credit sales of merchandise.
You Will Learn
the purpose of special journals.
how to use the sales journal.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

2. The Sales Journal Using Special Journals
SECTION 16.1
Using Special Journals
Each transaction in a general journal requires at least three journal lines. To improve efficiency merchandising businesses can use special journals. Special journals have amount columns used to record debits and credits to general ledger accounts. The four most commonly used special journals are:
sales journal,
cash receipts journal,
purchases journal, and
cash payments journal.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

3. The Sales Journal Journalizing and Posting to the Sales Journal
SECTION 16.1
Journalizing and Posting to the Sales Journal
The sales journal is used to record sales of merchandise on account.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

4. The Sales Journal Recording Sales of Merchandise on Account
SECTION 16.1
Recording Sales of Merchandise on Account
To record transactions in the sales journal, move from left to right following these steps:
Enter the sales slip date in the Date column.
Enter the sales slip number is the Sales Slip No. column.
Enter the customer’s name in the Customers Account Debited column.
Enter the merchandise sold total in the Sales Credit column.
Enter the sales tax in the Sales Tax Payable Credit column.
Enter the total amount to be received in the Accounts Receivable Debit column.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

5. The Sales Journal
SECTION 16.1
Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger
To post transactions to the accounts receivable subsidiary ledger, follow these steps:
Enter the transaction date in the Date column.
Enter the journal letter and page number in the Posting Reference column.
Enter the total amount to be received in the Debit column.
Compute the new balance and enter it in the Balance column.
Place a check mark in the Posting Reference column in the sales journal.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

6. The Sales Journal
SECTION 16.1
Posting a Sale Journal Entry to the Accounts Receivable Subsidiary Ledger
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

7. The Sales Journal
SECTION 16.1
Footing, Proving, Totaling, and Ruling the Sales Journal
Verify the column totals before posting them to the general ledger by following these steps:
Draw a single rule across the three amount columns, below the last transaction.
Foot the amount columns. Footing is a column total written in small penciled figures.
On separate paper, verify the debit column total equals the total of the two credit columns.
Enter the date in the Date column below the single rule.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

8. The Sales Journal
SECTION 16.1
Footing, Proving, Totaling, and Ruling the Sales Journal
Enter the word Totals on the same line in the Customer’s Account Debited Column.
Enter the column totals below the footings.
Double-rule the three amount columns.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

9. The Sales Journal
SECTION 16.1
Footing, Proving, Totaling, and Ruling the Sales Journal
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

10. The Sales Journal Posting the Total of the Sales Credit Column
SECTION 16.1
Posting the Total of the Sales Credit Column
Follow this procedure for posting the Sales Credit column to the general ledger Sales account:
1. In the Date column, enter the date from the Totals line of the sales journal.
2. Enter the sales journal letter and page number in the Posting Reference column.
3. Enter the total from the Sales Credit column of the sales journal in the Credit column.
4. Compute the new balance and enter it in the Credit Balance column.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.

11. The Sales Journal Posting the Total of the Sales Credit Column
SECTION 16.1
Posting the Total of the Sales Credit Column
5. In the sales journal, enter the Sales account number, in parentheses, below the double rule in the Sales Credit column.
Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved.