CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 2-1LESSON 2-1

Departmental Sales on Account and Sales Returns and Allowances

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-1

June 1. Sold audio equipment on account to Kim Electronics, $280.00, plus sales tax, $23.10; total, $303.10. Sales Invoice No. 101.

1. Write the date.

5. Write the sales tax payable amount.

4. Write the total invoice amount.

3. Write the sales invoice number.

2. Write the customer name.

6. Write the sales amount.

JOURNALIZING SALES ON ACCOUNTJOURNALIZING SALES ON ACCOUNT page 37

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-1

4. Enter account balance.

3. Enter amount in Debit column.

2. Write sales journal page.

1. Write date.

5. Write customer number in Post. Ref. column of sales journal.

POSTING FROM A SALES JOURNAL TO POSTING FROM A SALES JOURNAL TO THE ACCOUNTS RECEIVABLE LEDGERTHE ACCOUNTS RECEIVABLE LEDGER page 38

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-1

3. Enter debit amount.2. Write sales journal page.

4. Enter account balance.1. Write date. 5. Write general ledger account

number in parentheses.

POSTING FROM A SALES JOURNAL TO POSTING FROM A SALES JOURNAL TO A GENERAL LEDGER ACCOUNTA GENERAL LEDGER ACCOUNT page 39

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-1

June 5. Granted credit to Kim Electronics for audio equipment returned, $130, plus sales tax, $10.73, from Sales Invoice No. 101; total, $140.73. Credit Memo No. 43.

JOURNALIZING SALES RETURNS AND JOURNALIZING SALES RETURNS AND ALLOWANCESALLOWANCES page 40

3. Record credit memo number.

4. Write debit amounts.

1. Write date.

2. Enter accounts to be debited.

5. Enter accounts to be credited.

6. Draw diagonal line.

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7. Write credit amount.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-1

POSTING FROM GENERAL JOURNALPOSTING FROM GENERAL JOURNAL page 41

2. Journal page number

1. Date

5. Account numbers

3. Debit amounts

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-1

TERM REVIEWTERM REVIEW

credit memorandum – form used as source document for sales customer returns to you.

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 2-2LESSON 2-2

Journalizing and Posting Cash Receipts

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-2

DEPARTMENTAL CASH RECEIPTSDEPARTMENTAL CASH RECEIPTS

8.25% Sales TaxSales Amount Total Invoice Amount+ =

$1,700.00 + = $1,840.25$140.25

Discount RateInvoice Amount Sales Discount× =

$1,840.25 × = $36.812%

2% Sales DiscountTotal Invoice Amount Amount Due in 10 Days– =

$1,840.25 – = $1,803.44$36.81

Terms: 2/10, n/30Invoice paid within 10 days:

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-2

5. Write the sales discount debit amount.

June 1. Received cash on account from Olympic Productions, $1,803.44, covering Sales Invoice No. 96 for audio equipment for $1,840.25 ($1,700.00 plus sales tax, $140.25), less 2% discount, $36.81. Receipt No. 89.

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1. Write the date.

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3. Record the receipt number.

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4. Write the accounts receivable credit amount.

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2. Write the customer name.

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6. Write the cash debit amount.

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JOURNALIZING A CASH RECEIPT WITH JOURNALIZING A CASH RECEIPT WITH A SALES DISCOUNTA SALES DISCOUNT page 45

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-2

June 8. Received cash on account from Kim Electronics, $159.12, covering Sales Invoice No. 101 for $303.10 ($280.00 plus sales tax, $23.10), less Credit Memorandum No. 43 for $140.73 ($130.00 plus sales tax, $10.73), less 2% discount, $3.25. Receipt No. 92.

5. Write the sales discount debit amount.1. Write date.

3. Record receipt number.

4. Write the account receivable credit amount.2. Write the customer name.

6. Write the cash debit amount.

JOURNALIZING A CASH RECEIPT WITH A JOURNALIZING A CASH RECEIPT WITH A SALES RETURN AND A SALES DISCOUNTSALES RETURN AND A SALES DISCOUNT page 46

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-2

1. Date

3. Cash register tape number 4. Check mark in Post. Ref. column

2. Check mark in Account Title column

7. Cash debit amount

June 11. Recorded cash and credit card sales, audio equipment, $4,370.00; video equipment, $6,280.00; plus sales tax, $878.63; total $11,528.63. Terminal Summary No. 53.

5. Sales tax payable credit amount6. Sales credit amounts

JOURNALIZING CASH ANDJOURNALIZING CASH ANDCREDIT CARD SALESCREDIT CARD SALES page 47

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LESSON 2-2

2. Column totals are posted to the account named in the column heading.

1. Individual amounts are posted to the accounts receivable ledger.

POSTING FROM A CASH RECEIPTS POSTING FROM A CASH RECEIPTS JOURNALJOURNAL page 48

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-2

ORDER OF POSTING FROM JOURNALSORDER OF POSTING FROM JOURNALS

Sales journal Purchases journal General journal Cash receipts journal Cash payments journal

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 2-2

TERMS REVIEWTERMS REVIEW

sales discount – discount offered to a customer to encourage prompt payment

point-of-sale (POS) terminal – computer used to collect, store and report all information of a sales transactions

terminal summary – The report that summarizes the cash and credit card sales of a point of sale terminal

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