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

2. 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

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

4. Sales tax and sales journal

5. SALE ON ACCOUNT
page 273
November 3. Sold merchandise on account to Village Crafts, $540.00, plus sales tax, $32.40; total, $ 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

6. TOTALING, PROVING, AND RULING A SALES JOURNAL
page 274
LESSON 10-1

7. 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

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

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

10. 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

11. 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

12. 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 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

13. 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

14. 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. 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

15. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
page 283
LESSON 10-2

16. 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

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

18. 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, $ 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