1. Learning Targets Chapter 10
I will be responsible for knowing and understanding the following concepts:
Accounting Terms Related to the sales and cash receipts journals
Accounting Concepts and Practices related to the sales and cash receipts journals
Journalize Sales on Account using a sales journal
Journalize Cash Receipts using a cash receipts journal
Recording Sales Returns and Allowances using a general journal
I will be able to listen to my instructor and take notes, be an active participant as needed.
I will complete the Workbook Assignments for 10-1

2. Expanding the Ledger-Special Journals
Used to record similar types of transactions.
If a transaction cannot be recorded in a special journal, the company records it in the general journal.
LESSON 9-1

3. How do we record sales in a Sales Journal?
What are some things that you buy when you go out shopping?
What different factors affect the final price that YOU pay at the register?

4. What Kid of Account Would
LESSON 10-1
4/13/2017
NEW TERMS
Customer: a person or business to whom merchandise or services are sold
Sales tax: a tax on a sale, usually a percentage of sales
-Every business collecting a sales tax needs accurate records of the amount of total sales and total sales tax collected.
-The amount of sales tax collected is a business liability until paid to the government agency.
What Kid of Account Would
Sales Tax Be? A, L, or O.E.?

5. SALES TAX
Sales Tax Payable – liability account where sales tax amounts are recorded.
-A customer must pay the price of the goods PLUS the sales tax amount.

6. SALES OF MERCHANDISE ON ACCOUNT
A Sale of merchandise is either on account (charge sale) or for cash.
Concept: Realization of Revenue - Sales increase the revenue of a business and should be recorded at the time of sale.
Accounts Receivable – a general ledger asset account used to summarize the total due from all charge customers.

7. SALES JOURNAL
Sales Journal – used to record only sales of merchandise ON ACCOUNT
Sales Invoice – source document for recording a sale on account

8. SALES INVOICE

9. SALE ON ACCOUNT
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.

10. TOTALING, PROVING, AND RULING A SALES JOURNAL

11. TERMS REVIEW
page 275
customer
sales tax
sales journal
LESSON 10-1

12. WT / OYO WT
OYO TB
275 WB
225
226
LESSON 10-1

13. Learning Targets 10-2
I will be responsible for knowing and understanding the following concepts:
Accounting terms related to cash receipts for a merchandising business
Accounting concepts as they relate to a cash receipts for a merchandising business
Accounting practices as they relate to the Cash Receipts Journal
I will be able to listen to my instructor and take notes, be an active participant as needed.
I will complete 10-2 Workbook activities as assigned

14. AIM: How do we use a Cash Receipts journal when we receive cash?
What are the different ways you pay for products when you go to the store?
What happens when you swipe your credit card?
Do you know of any stores that do not accept credit cards? Why?

15. Expanding the Ledger-Special Journals
Used to record similar types of transactions.
If a transaction cannot be recorded in a special journal, the company records it in the general journal.
LESSON 9-1

16. Cash Sale – a sale in which cash is received for the total amount 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 ex. Visa, MasterCard, American Express
- A customer who uses a credit card promises to pay the amount due for the transaction to the bank issuing the card
- Merchandising businesses contract with a bank to process credit card sales and pay a percentage of those sales as a fee for credit card processing

17. Point of Sale Terminal (POS)
A computer used to collect, store and report all the information of a sales transaction. Uses a scanning device to scan the Universal Product Code (UPC) symbol on the item. The POS stores the number, description, price and quantity on hand of each item of merchandise.

18. PROCESSING SALES TRANSACTIONS
LESSON 10-2
4/13/2017
PROCESSING SALES TRANSACTIONS
UPC (Universal Product Code)
Cash Register Receipt – does NOT show information about what merchandise was sold
Point-of-Sale (POS) Terminal Receipt – shows information
(continued on next slide)

19. PROCESSING SALES TRANSACTIONS
Terminal Summary – a report that summarizes cash and credit card sales, used as a source document for recording sales
Batch Report – contains a summary of ONLY credit card sales
Batching out – the process of preparing a batch report of credit card sales

20. 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, pays less than the invoice amount previously recorded.

21. CASH AND CREDIT CARD SALES
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.

22. CASH RECEIPTS ON ACCOUNT
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.

23. JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS
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.

24. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL

25. Proving Cash Cash on hand at the beginning of the month $17,647.44
(Nov 1 balance of general ledger cash account)
Plus total cash received during the month $38,668.80
(Cash debit column total, cash receipts journal)
Equals total $56,316.24
Less total cash paid during the month $32,
(Cash credit column total, cash payments journal, Chapter 9)
Equals cash balance on hand at the end of the month $23,414.84
Checkbook balance on the next unused check stub $23,414.84

26. TERMS REVIEW cash sale credit card sale point-of-sale (POS) terminal
page 284
cash sale
credit card sale
point-of-sale (POS) terminal
terminal summary
batch report
batching out
cash receipts journal
sales discount

27. WT / OYO
Text Book
Work Book WT
284
227
OYO
228
LESSON 10-2

28. Learning Targets 10-3
I will be responsible for knowing and understanding the following concepts:
Accounting terms related to the sales and cash receipts journals for a merchandising business
Accounting practices as they relate to the sales and cash receipts journals
Record sales returns and allowances using a general journal
I will be able to listen to my instructor and take notes, be an active participant as needed.
I will complete 10-3 Workbook activities as assigned

29. AIM: What sales related transactions do we put in the general journal?
LESSON 10-3
4/13/2017
AIM: What sales related transactions do we put in the general journal?
What can a customer do if they are dissatisfied with their purchase or if it damaged?
What amount of money do we give back to them?
What 2 types of transactions did we put in the general journal in the last chapter?

30. NEW TERMS
Sales Return – credit allowed a customer for the sales price of returned merchandise (plus tax) resulting in a decrease in A/R, AS WELL AS a decrease in sales tax.
Sales Allowance – credit allowed a customer for PART of the sales price of merchandise (plus tax) that is NOT returned, resulting in a decrease in A/R AS WELL AS a decrease in sales tax.
Credit Memorandum – a form prepared by the vendor showing the amount deducted for returns and allowances (source document)
Sales Returns and Allowances is a contra account to Sales, has a normal debit balance.

31. CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES
Sales tax is listed separately and must be recorded as such in the transaction

32. JOURNALIZING SALES RETURNS AND ALLOWANCES
March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $ Credit Memorandum No. 41.
Sales tax is debited here because it was given back to the customer 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.

33. Classwork Work Together 10-3: Text Page 287, Workbook Page 229
On Your Own 10-3: Text Page 287, Workbook Page 230

34. HOMEWORK
APPLICATION PROBLEM 10-2: Text Page , Workbook Page 232
APPLICATION PROBLEM 10-3: text Page 290, Workbook Page 233
LESSON 10-3