sales on account what journal do we use? test your knowledge
TRANSCRIPT
![Page 1: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/1.jpg)
Sales on Account What journal do we use?
TEST YOUR KNOWLEDGE
![Page 2: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/2.jpg)
TEST YOUR KNOWLEDGE
What journal is used for the following:
Purchased merchandise for cash? Purchased merchandise on account? Sold merchandise on account Paid advertising expense? Sold merchandise for cash Purchased Supplies-office on account? Returned Merchandise? Replenish Petty Cash Account? Received Credit Card and Cash Sales?
Cash Payment JournalPurchases JournalSales JournalCash Payment JournalCash Payment JournalGeneral JournalGeneral JournalCash Payment JournalCash Receipts Journal
![Page 3: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/3.jpg)
LESSON 10-2
Journalizing Cash Receipts Using a Cash Receipts Journal
Only includes cash receipt transactionsReceived Cash from Sales for cash/creditReceived payment on account
![Page 4: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/4.jpg)
Two Types of Cash Sales: Cash Sale: cash is received at time of transaction Credit Card Sale: sale where credit card used received for transaction
Point-of-sale (POS) terminal: computer used to collect, store, and report all the information of a sales transaction: Where can you find a POS? Tells what, when, and how sold Scans the UPC barcode on items
![Page 5: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/5.jpg)
PROCESSING SALES TRANSACTIONS
Cash Register Receipt
Cash Register Receipt
Point-of-Sale (POS) Terminal Receipt
Point-of-Sale (POS) Terminal Receipt
Customer ReceiptTraditional
![Page 6: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/6.jpg)
PROCESSING SALES TRANSACTIONS
Terminal summary (TS): • Summarizes the cash and credit card
sales of a POS terminal • TS = source document for sales for
cash/credit card
• Who has the most sophisticated POS system?
Terminal SummaryTerminal Summary
![Page 7: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/7.jpg)
BATCH REPORT
Batch Out: process of preparing a batch report of credit card sales from POS POS sends message of sales to bank Bank sends sales to the Federal Reserve
Bank Federal reserve acquires the money from
purchaser’s bank Federal reserve deposits money to business
Batch ReportBatch Report
![Page 8: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/8.jpg)
CASH AND CREDIT CARD SALES
October 1. Recorded cash and credit card sales
$5,460.00, plus sales tax, $327.60; total, $5,787.60. TS 42.• What Accounts are impacted and how?
•Cash – is increased as a ?•Sales Tax Payable – increases as a ?•Sales - increases as a ?
Cash SalesSales Tax Payable
![Page 9: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/9.jpg)
CASH AND CREDIT CARD SALES
Oct. 1. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5,787.60. Terminal Summary 42.• What Accounts are impacted and how? Cash Receipts Journal Page:
Date Account TitleDoc No
Post.Ref
General Accounts Receivable
CreditSales Credit
Sales Tax Payable Credit
Sales Discount Debit
Cash DebitDebit Credit
![Page 10: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/10.jpg)
CASH RECEIPTS ON ACCOUNT
October 1. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90.• What accounts are impacted and how?
•Cash – increased as ?•Accts Rec/ - decreased as ?
Cash Acct Rec/Country Crafters
![Page 11: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/11.jpg)
CASH RECEIPTS ON ACCOUNT
Oct 1. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 141.
Cash Receipts Journal Page:
Date Account TitleDoc No
Post.Ref
General Accounts Receivable
CreditSales Credit
Sales Tax Payable Credit
Sales Discount Debit
Cash DebitDebit Credit
1 TS42 5460.00 327.60 5787.60
![Page 12: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/12.jpg)
CASH RECEIPTS WITH A DISCOUNT
Sales Discount: cash discount on sales taken by customer for quick payment incentive Contra Account to Sales What side is the Normal balance?
debit side (increases)
![Page 13: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/13.jpg)
JOURNALIZING CASH RECEIPTS WITH DISCOUNTS
Oct 1. Received cash on account from Cumberland Center, covering Sales Invoice No. 74 for $1,200.00, less 2% discount. Receipt No. 142.• What accounts are impacted and how?
•Accounts Rec/Cumberland Center – decreases as ?•Cash – Increase as ?•Sales Discount – Increases as?
Cash Sales DiscountAcct. Rec/Cumberland Center
![Page 14: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/14.jpg)
JOURNALIZING CASH RECEIPTS WITH DISCOUNTS
Oct 1. Received cash on account from Cumberland Center, covering Sales Invoice No. 74 for $1,200.00, less 2% discount. R 142.
4. Enter Accounts Receivable as the original invoice amount.
1. Enter the date.
2. Enter Account title as Cumberland Center.
3. DOC No. = R142.
5. Enter amount of sales discount.
6. Enter Cash debit as Accounts receivable - sales tax = Cash amount
Cash Receipts Journal Page:
Date Account TitleDoc No
Post.Ref
General Accounts Receivable
CreditSales Credit
Sales Tax Payable Credit
Sales Discount Debit
Cash DebitDebit Credit
1 TS42 5460.00 327.60 5787.60
1Country Crafters R141 2162.40 2162.40
![Page 15: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/15.jpg)
TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
![Page 16: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/16.jpg)
TERMS REVIEW
cash sale credit card sale point-of-sale (POS) terminal terminal summary batch report batching out cash receipts journal sales discount
![Page 17: Sales on Account What journal do we use? TEST YOUR KNOWLEDGE](https://reader035.vdocuments.net/reader035/viewer/2022070412/56649d995503460f94a841e4/html5/thumbnails/17.jpg)
Assignment
Work Together 10-2