1. Accounting for Sales and Cash Receipts
Chapter 10
Accounting for Sales and Cash Receipts

2. Learning Targets
Explain the relationship between accounts receivable ledger and its controlling account
Record sales on account using the sales journal and post
Record cash & credit card sales using cash receipts journal and post
Prepare a schedule of A/R

3. 10-1 Journalizing Sales on Account Using a Sales Journal
Terms:
Selling Price – the amount a business receives from the sale of an item of merchandise.
Markup – the amount a business adds to the cost of merchandise to establish the selling price.
Sales Tax – A tax on a sale of merchandise or service.
Sales Journal – Special Journal used to record only sales of merchandise on account.

4. 10.1
Accounts Receivable Ledger – a subsidiary ledger containing all accounts for charge customers.
Sales Journal – a special journal used to record only sales of merchandise on account.

5. Mama Bear = Sales Credit Papa Bear = Accts. Rec. Debit
Baby Bear = Sales Tax Payable Credit

6. 10.3 Cash Receipts
The last journal of the five!!!

7. 10-3 Journalizing Cash Receipts Using a Cash Receipts Journal
Terms:
Cash Sale – A 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.

8. Terms Continued…
Terminal Summary – The report that summarizes cash and credit card sales of a point-of-sale terminal.
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.

9. Terms Continued...
Cash Receipts Journal – A special journal used to record only cash receipt transactions.
Sales Discount – A cash discount on sales taken by a customer (contra account).

10. Terms Finished!!!!