The Accounting Cycle for a Merchandising Corporation!!!Chapter 16: SpecialJournals: Sales & CashReceipts
16. Understand two special journal: Sales Journal & Cash Receipts Journal by being able to: a. Identify special journals & how they are used. b. Record sales of merchandise on account in the sales journal c. Record receipt of all cash into Cash Receipts Journal d. Post from the Sales Journal to the General Journal & A/R Subsidiary Ledger e. Post from the Cash Receipts Journal to General Journal & A/R Subsidiary Ledger f. Foot, prove, total & rule sales journal & cash receipts journal g. Define the accounting terms used in this chapter
Have amounts columns used to record debits and credits to specific general ledger accounts Most transactions recorded on one line Simplify journalizing & posting process
1. Sales journal Sale of merchandise2. Cash receipts on account journal Receipt of all cash3. Purchases Purchase of any journal asset account4. Cash payments Payment of all cash journal
Special journal used to record sales of merchandise on account Sales journal has: a) Space for page number b) Columns for date & posting reference c) Separate column to record the sales slip number d) Column to record name of charge customer e) Three special amount columns: 1. Sales Credit column 2. Sales Tax Payable Credit column 3. A/R Debit Column
On December 1 On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50
Posting transactions from the Sales Journal to the A/R Subsidiary Ledger.
Special journal used to record receipt of all cash received or (cash receipt)—debit to Cash in Bank Cash Receipts Journal has: a) Space for page number b) Columns for date & posting reference c) Separate column to record the sales slip number d) Column to record name of charge customer e) Six special amount columns: 1. General Credit column 2. Sales Credit column 3. Sales Tax Payable Credit column 4. A/R Credit column 5. Sales Discounts Debit column 6. Cash in Bank Debit column
General Credit Record credit to accounts where there is no special column Sales Credit Merchandise purchased by Sales Tax Payable customers using cash or bank Credit cards Sales tax collected A/R Credit Record payments from charge customers Sales Discounts Record amount o cash Debit discounts taken by charging customers Cash in Bank Debit Record amount of cash actually received in transaction
On December 5, Casey Klein pays $212.00 on account,R301.
Received $1,470 from South Branch High School Athleticsin payment of Sales Slip 51 for $1500 less discount of $30,Receipt 302.
Now, on to some class activities on our topic!!!