+ lesson 10-1 journalizing sales on account using a sales journal
TRANSCRIPT
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LESSON 10-1
Journalizing Sales on Account Using a Sales Journal
+Sales Tax/Customers
Purchases and sales of merchandise are the two major activities of a merchandising business.
A person or business to whom merchandise or series are sold is called a customer.
Hobby Shack sells merchandise to a variety of customers, including individuals, schools and churches.
+Sales Tax
Laws of most states and some cities require that a tax be collected from customers for each sale made.
A tax on a sale of merchandise or services is called a sales tax.
Sales tax rates are usually stated as a percentage of sales. Regardless of the tax rates used, accounting procedures are the same.
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LESSON 10-1
4
SALES TAX page 270
Every business collecting a sales tax needs accurate records of the amount of (1) total sales and (2) total sales tax collected. The amount of sales tax collected is a business liability until paid to the government agency. Sales Tax Payable-normal credit balance
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LESSON 10-1
5
SALES OF MERCHANDISE ON ACCOUNT
page 271
A sale of merchandise may be (1) on account or (2) for cash. A sale of merchandise increases the revenue for a business. Regardless of when payment is made, the revenue should be recorded at the time of a sale, not on the date cash is received. Accounts Receivable-normal debit balance
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LESSON 10-1
6
SALES JOURNAL page 272
Hobby Shack uses a special journal to record only sales of merchandise on account transactions. A special journal used to record only sales of merchandise on account is called a sales journal.
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LESSON 10-1
7
SALES INVOICE page 272
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LESSON 10-1
8
SALE ON ACCOUNT
1 2 3 4 5 6
page 273
November 3. Sold merchandise on account to Village Crafts, $540.00, plus sales tax, $32.40; total, $572.40. Sales Invoice No. 76.
1. Write the date.
6. Write the sales tax amount.
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.
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LESSON 10-1
9
TOTALING, PROVING, AND RULING A SALES JOURNAL
page 274
LESSON 10-1
10+TERMS REVIEW
customer
sales tax
sales journal
page 275
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LESSON 10-2
Journalizing Cash Receipts Using a Cash Receipts Journal
+Processing Sales Transactions
A sale in which cash is received for the total amount of the sale at the time of the transaction is called a cash sale.
A sale in which a credit card is used for the total amount of the sale at the time of transaction is called a credit card sale.
A computer used to collect, store, and report all the information of a sales transaction is called a point-of-sale (POS) terminal.
The report that summarizes the cash and credit card sales of a point-of-sale terminal is called a terminal summary.
+Processing Credit Cards
A report of credit card sales produced by a point-of-sale terminal is called a batch report.
The process of preparing a batch report of credit card sales from a point-of-sale terminal is called batching out.
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LESSON 10-2
14PROCESSING SALES TRANSACTIONS pages 276- 277
UPC (Universal Product Code)
Cash Register Receipt
Point-of-Sale (POS) Terminal Receipt
(continued on next slide)
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LESSON 10-2
15PROCESSING SALES TRANSACTIONS page 277
Terminal Summary
Batch Report
(continued from previous slide)
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LESSON 10-2
16
CASH RECEIPTS JOURNAL page 278
A special journal used to record only cash receipt transactions is called a cash receipts journal. A cash discount on sales taken by a customer is called a sales discount.
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LESSON 10-2
17
CASH AND CREDIT CARD SALES
1
2
3
4
5 6
page 279
November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5,787.60. Terminal Summary 34.
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.
7
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LESSON 10-2
18
CASH RECEIPTS ON ACCOUNT
1 2 3 4 5
page 280
November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90.
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.
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LESSON 10-2
19
JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS
1 2 3 4 5 6
page 282
November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sales Invoice No. 74 for $1,200.00, less 2% discount, $24.00. Receipt No. 91.
4. Write the original invoice amount.1. Write the date.
2. Write the customer’s name.
3. Write the receipt number.
5. Write the amount of sales discount.
6. Write the debit to cash.
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LESSON 10-2
20
TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
page 283
LESSON 10-2
21+TERMS REVIEW
cash sale
credit card sale
point-of-sale (POS) terminal
terminal summary
batch report
batching out
cash receipts journal
sales discount
page 284
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LESSON 10-3
Recording Transactions Using a General Journal
+Sales Returns and Allowances
Credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor’s accounts receivable, is called a sales return.
Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor’s accounts receivable, is called a sales allowance.
A form prepared by the vendor showing the amount deducted for returns and allowances is called a credit memorandum.
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LESSON 10-3
24
CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES
page 285
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LESSON 10-3
25
JOURNALIZING SALES RETURNS AND ALLOWANCES
12
34
6
page 286
March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $62.01. Credit Memorandum No. 41.
7 89
5
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.
LESSON 10-3
26+TERMS REVIEW
sales return
sales allowance
credit memorandum
page 287