1. Special Journals: Sales and Cash Receipts
Chapter 16 $
Special Journals: Sales and Cash Receipts $
Making Accounting Relevant
In a merchandising business, revenue from sales fuels business operations. $ $
What tactics do businesses in your area use to increase sales?

2. $ $ $ $ Section 1 The Sales Journal What You’ll Learn Chapter 16
To identify the special journals and how they are used.
How to record sales of merchandise on account in a sales journal.
How to post from the sales journal to the accounts receivable subsidiary ledger accounts.
How to foot, prove, total, and rule the sales journal.
How to post column totals from the sales journal to the general ledger. $ $ $

3. $ $ $ $ Why It’s Important Key Terms Chapter 16 special journals
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Why It’s Important
The use of the sales journal provides a systematic method of keeping track of sales on account. $ $
Key Terms
special journals
sales journal
footing $

4. $ $ $ $ Special Journals Chapter 16
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Special Journals
Special journals have amount columns used to record debits and credits to specific general ledger accounts. $
Journal Transaction $
Sales Journal sales of merchandise on account
Cash Receipts Journal receipt of cash $
Purchases Journal purchase of any asset on account
Cash Payments Journal payment of cash, including payments by check

5. $ $ $ $ The Sales Journal Chapter 16
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
The Sales Journal
The sales journal is a special journal used to record sales of merchandise on account. $ $
Record the amount of the
merchandise sold on account $
Record the amount of sales tax on
the sale
Record the total amount to be received from the customer on account

6. $ $ $ $ Recording Sales of Merchandise on Account Chapter 16
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Recording Sales of Merchandise on Account
Business Transaction $
On December 1, On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50. $
JOURNAL ENTRY $

7. Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger
To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger. $ $ $

8. $ $ $ $ Footing, Totaling, Proving, and Ruling the Sales Journal
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Footing, Totaling, Proving, and Ruling the Sales Journal $ $ $

9. $ $ $ $ Posting the Total of the Sales Credit Column Chapter 16
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Posting the Total of the Sales Credit Column
Next, transfer the amount in the Sales column to the general ledger. $ $ $

10. $ $ $ $ Posting the Total of the Sales Tax Payable Credit Column
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Posting the Total of the Sales Tax Payable Credit Column
Next, transfer the amount in the Sales Tax Payable column to the general ledger. $ $ $

11. $ $ $ $ Posting the Total of the Accounts Receivable Debit Column
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Posting the Total of the Accounts Receivable Debit Column
The last amount to be transferred to the general ledger is the Accounts Receivable Debit column. $ $ $

12. $ $ $ $ Proving the Sales Journal at the End of a Page Chapter 16
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Proving the Sales Journal at the End of a Page
If a business has many transactions in one month, and it is impossible to fit them onto one journal page, the journal page must be totaled and ruled before a new page is started. $ $ $

13. $ $ $ $ 1. What are the most commonly used special journals?
Section 1 The Sales Journal (cont'd.)
Chapter 16 $
Check Your Understanding
1. What are the most commonly used special journals? $ $
2. What does an account number written in parentheses under a column total mean? $