1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 2-1 Departmental Sales on Account and Sales Returns and Allowances

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 2 Objectives Recording Departmental Sales and Cash Receipts After studying Chapter 2, you will be able to: Define terms related to departmental sales and cash receipts. Identify concepts and practices related to departmental sales and cash receipts. Journalize and post departmental sales on account and sales returns and allowances. Journalize and post departmental cash receipts. 2 LESSON 1-2

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Recording Departmental Sales and Cash Receipts credit memorandum: the source document prepared by the vendor showing the amount deducted for returns and allowances 3 LESSON 2-1

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 2-1 June 1. Sold audio equipment on account to Kim Electronics, $280.00, plus sales tax, $23.10; total, $303.10. Sales Invoice No. 101. 1.Write the date. 5.Write the sales tax payable amount. 4.Write the total invoice amount. 3.Write the sales invoice number. 2.Write the customer name. 6.Write the sales amount. JOURNALIZING SALES ON ACCOUNT page 37 123456

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 2-1 4.Enter account balance. 3.Enter amount in Debit column. 2.Write sales journal page. 1.Write date. 5.Write customer number in Post. Ref. column of sales journal. POSTING FROM A SALES JOURNAL TO THE ACCOUNTS RECEIVABLE LEDGER page 38 1 2 3 4 5

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 2-1 3.Enter debit amount. 2.Write sales journal page. 4.Enter account balance.1.Write date. 5.Write general ledger account number in parentheses. POSTING FROM A SALES JOURNAL TO A GENERAL LEDGER ACCOUNT page 39 1 4 2 5 3

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 2-1 June 5. Granted credit to Kim Electronics for audio equipment returned, $130, plus sales tax, $10.73, from Sales Invoice No. 101; total, $140.73. Credit Memo No. 43. JOURNALIZING SALES RETURNS AND ALLOWANCES page 40 3.Record credit memo number. 4.Write debit amounts. 1.Write date. 2.Enter accounts to be debited. 5.Enter accounts to be credited. 6.Draw diagonal line. 2 3 4 5 6 7.Write credit amount. 1 7

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 2-1 POSTING FROM GENERAL JOURNAL page 41 2.Journal page number 1.Date 5.Account numbers 3.Debit amounts 4.Credit amount 1 1 1 1 1 2 2 2 2 2 3 3 3 4 4 4 5 5 5 5 5

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 2-1 DEFINE TERM REVIEW In Quizlet credit memorandum page 43 Create: Chapter 2 AdvAcc (then SAVE)

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Exit Ticket for today: Audit Your Understanding 2-1 1.What is a tax-exempt customer? Given an example 2.For what purpose is a credit memorandum issued? 10 LESSON 2-1 In a Word Document, SaveAS: Chapter2-1AYUYourName And drop in my Inbox today!

11. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Complete the following assignments for Chapter 2-1 today Define Term Review on page 43. Answer Audit Your Understanding questions on page 43. Complete Work Together 2-1 on Aplia – page 43 Complete On Your Own 2-1 on Aplia – page 43 Complete Application Problem 2-1 on Aplia – page 52. 11 LESSON 2-1