0 glencoe accounting unit 4 chapter 16 copyright © by the mcgraw-hill companies, inc. all rights...

Glencoe Accounting Unit 4 Chapter 16 Copyright © by The McGraw-Hill Companies, Inc. All rights reserved. 1

Chapter 16, Section 2Special Journals: Sales and

Cash Receipts

What Do You Think?What column headings do you think will be listed in the cash receipts journal?


Main IdeaCash receipts journal is used to record the cash a business receives.

You Will Learn how to use the cash receipts journal. the purpose of the schedule of accounts

receivable. about Internet sales.

The Cash Receipts JournalSECTION 16.2


Key Terms cash receipts journal schedule of accounts receivable



Journalizing and Posting to the Cash Receipts JournalThe cash receipts journal is a special journal used to record all cash receipt transactions. Every entry debits the Cash in Bank account.



Recording Cash from Charge CustomersFollow these steps when journaling cash receipts from charge customers:

Enter the transaction date in the Date column. Enter the receipt number in the Document Number

column. Enter the customer’s name in the Account Name

column. Enter the decrease in the amount owed in the

Accounts Receivable Credit column. Enter the amount of cash received in the Cash in

Bank Debit column.



Recording Cash Received on Account, Less a Cash DiscountFollow these steps to record a cash receipt transaction with a cash discount:

Enter the receipt date in the Date column. Enter the receipt number in the Document

Number column. Enter the customer’s name in the Account Name

column. Enter the original sales transaction amount in the

Accounts Receivable Credit column.



Recording Cash Received on Account, Less a Cash Discount

Enter the cash discount amount in the Sales Discounts Debit column.

Enter the amount of cash received in the Cash in Bank Debit column.



Recording Cash SalesFollow these steps to enter cash sales in the cash receipts journal:

Enter the cash register tape date in the Date column.

Enter the tape number in the Document Number column.

Enter Cash Sales in the Account Name column. Enter a dash in the Posting Reference column. Enter the amount of merchandise sold in the

Sales Credit column.



Recording Cash Sales Enter the sales taxes collected in the Sales Tax

Payable Credit column. Enter the total cash received in the Cash in Bank

Debit column.



Recording Bankcard SalesFollow these steps to enter bankcard sales in the cash receipts journal:

Enter the cash register tape date in the Date column.

Enter the tape number in the Document Number column.

Enter Bankcard Sales in the Account Name column.

Enter a dash in the Posting Reference column. Enter the amount of merchandise sold in the Sales

Credit column.



Recording Bankcard Sales Enter the sales taxes collected in the Sales Tax

Payable Credit column. Enter the total cash received in the Cash in Bank

Debit column.



Recording Other Cash ReceiptsFollow these steps to record in the cash receipts journal a transaction that does not involve the sale of merchandise:

Enter the receipt date in the Date column. Enter an R and the receipt number in the

Document Number column. Enter the general ledger account name in the

Account Name column. Enter the credit amount in the General Credit

column. Enter the total cash received in the Cash in Bank

Debit column.



Posting to the Accounts Receivable Subsidiary LedgerFollow these steps to post a cash receipt transaction to an account in the accounts receivable subsidiary ledger:

Enter the transaction date in the Date column of the subsidiary ledger account.

Enter the journal letters and page number in the Posting Reference column.

Enter the amount from the Accounts Receivable Credit column of the cash receipts journal in the subsidiary ledger Credit column.



Posting to the Accounts Receivable Subsidiary Ledger

Enter the new balance in the Balance column. If it is zero, draw a line through it.

Enter a check mark in the Posting Reference column of the cash receipts journal.



Posting the General Credit ColumnFollow these steps to post from the General Credit column of the cash receipts journal:

1. Enter the transaction date in the Date column of the general ledger.

2. Enter the journal letters and page number in the Posting Reference column.

3. Enter the amount from the General Credit column of the cash receipts journal.

4. Enter the new balance in the proper Balance column. If it is zero, draw a line through it.

5. Enter the general ledger account number in the Posting Reference column of the cash receipts journal.



Posting the General Credit Column



Footing, Proving, Totaling, and Ruling the Cash Receipts JournalFollow these steps to complete the cash receipts journal:

1. Draw a single rule across the six amount columns below the last transaction.

2. Foot the columns.

3. Verify the debits and credits are equal.

4. Enter the date the journal is being totaled in the Date column.

5. Enter Totals in the Account Name column.

6. Enter the column totals, in ink, below the footings.

7. Double-rule the amount columns.



Footing, Proving, Totaling, and Ruling the Cash Receipts Journal



Posting Column Totals to the General LedgerFollow these steps to post totals to the general ledger:

Place a check mark in parentheses under the General Credit column total.

Post the Sales total to the Sales account Credit column.

Post the Sales Tax Payable total to the Sales Tax Payable account Credit column.

Post the Accounts Receivable total to the Accounts Receivable controlling account Credit column.

Post the Sales Discounts total to the Sales Discounts account Debit column.



Posting Column Totals to the General Ledger Post the Cash in Bank total to the Cash in Bank

account debit column. Compute new balances for each general ledger

account. Write each account number in parentheses below

the double rule in the cash receipts journal.



Using the Schedule of Accounts ReceivableA schedule is prepared for each subsidiary ledger to determine whether the subsidiary ledger’s sum equals the controlling account’s ending balance.



Proving the Accounts Receivable Subsidiary LedgerThe schedule of accounts receivable is used to prove the receivable subsidiary ledger. The balance of Accounts Receivable in the general ledger should equal the individual accounts receivable subsidiary ledger totals.



Detecting Errors in the Subsidiary LedgerSome errors that could exist in the subsidiary ledger are

failing to post a transaction, or miscalculating an account balance.

Proving the accounts receivable subsidiary ledger does not ensure that transactions were posted to the correct customer account.



Internet SalesCompanies can sell products with little expense and effort over the Internet. An Internet merchant account for credit and debit card payments or an online payment service can be used for these sales transactions.



Key Terms Review cash receipts journal

A special journal used to record all transactions in which cash is received.

schedule of accounts receivable

A list of each charge customer, the balance in the customer’s account, and the total amount due from all customers.


0 glencoe accounting unit 4 chapter 16 copyright © by the mcgraw-hill companies, inc. all rights...

Documents

cash sales

cash discount

cash receipts journal

journaling cash receipts

cash receipt transactions

date column

cash register tape date

sales credit column