century 21 accounting © thomson/south-western lesson 11-1 journalizing sales on account using a...
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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 11-1LESSON 11-1
Journalizing Sales on Account Using a Sales Journal
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-1
SALES TAXSALES TAX
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-1
SALES OF MERCHANDISE ON ACCOUNTSALES OF MERCHANDISE ON ACCOUNT
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-1
SALES JOURNALSALES JOURNAL
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON1
SALES INVOICESALES INVOICE
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-1
SALE ON ACCOUNTSALE ON ACCOUNT
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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.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-1
TOTALING, PROVING, AND RULING A TOTALING, PROVING, AND RULING A SALES JOURNALSALES JOURNAL
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-1
TERMS REVIEWTERMS REVIEW
Customer A person or business to whom merchandise or services are
sold.
sales tax A tax on a sale of merchandise or services
sales journal A special journal used to record only sales of merchandise
on account.
CENTURY 21 ACCOUNTING © Thomson/South-Western
Audit Your Understanding 11-1Audit Your Understanding 11-1
How does a merchandising business differ from a service business? Sells merchandise vs services
How are sales tax rates usually stated? % of sales
Why is sales tax collected considered a liability? Something owed to the government
What is the title of the general ledger account used to summarize the total amount due from all charge customers? Accounts Receivable
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LESSON 11-1
CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 11-2LESSON 11-2
Journalizing Cash Receipts Using a Cash Receipts Journal
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-2
PROCESSING SALES TRANSACTIONSPROCESSING SALES TRANSACTIONS
UPC (Universal Product Code)UPC (Universal Product Code)
Cash Register Receipt
Cash Register Receipt
Point-of-Sale (POS) Terminal Receipt
Point-of-Sale (POS) Terminal Receipt
(continued on next slide)
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-2
PROCESSING SALES TRANSACTIONSPROCESSING SALES TRANSACTIONS
Terminal SummaryTerminal Summary
Batch ReportBatch Report
(continued from previous slide)
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-2
CASH RECEIPTS JOURNALCASH RECEIPTS JOURNAL
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-2
CASH AND CREDIT CARD SALESCASH AND CREDIT CARD SALES
1122
3344
55 66
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.
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CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-2
CASH RECEIPTS ON ACCOUNTCASH RECEIPTS ON ACCOUNT
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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.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-2
JOURNALIZING CASH RECEIPTS ON JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTSACCOUNT WITH SALES DISCOUNTS
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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.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 11-2
TOTALING, PROVING, AND RULING A TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNALCASH RECEIPTS JOURNAL
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-1
TERMS REVIEWTERMS REVIEW
cash sale A sale in which cash is received for the total amount of the
sale 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
cash receipts journal A special journal used to record only cash receipt
transactions
CENTURY 21 ACCOUNTING © Thomson/South-Western
Audit Your Understanding – 11-2Audit Your Understanding – 11-2
What accounts are increased and decreased when cash is received on account? Cash is debited, and accounts receivable is credited
What is written in the cash receipts journal’s Account Title column for a cash and credit sales transaction? A check mark
Describe how to prove cash. Cash on hand at the beginning of the month, plus total cash
received during the month, less total cash paid during the month, equals cash balance on hand at the end of the month. Cash is proved if the balance on the next used check stub is the same as the cash proof.
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LESSON 10-1