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

Chapter 2 ObjectivesChapter 2 ObjectivesRecording Departmental Sales and Cash Recording Departmental Sales and Cash ReceiptsReceipts

After studying Chapter 2, you will be able to:Define terms related to departmental sales and cash receipts.Identify concepts and practices related to departmental sales and cash receipts.Journalize and post departmental sales on account and sales returns and allowances.Journalize and post departmental cash receipts.

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LESSON 2-2

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Recording Departmental Sales and Cash Recording Departmental Sales and Cash ReceiptsReceipts

sales discount: a cash discount on sales point-of-sale (POS) terminal: a computer used to

collect, store, and report all the information of a sales transaction

terminal summary: the report that summarizes the cash and credit card sales of a point-of-sale terminal

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LESSON 2-2

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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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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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

DEFINE TERMS REVIEWDEFINE TERMS REVIEWIn QuizletIn Quizlet

sales discount point-of-sale (POS) terminal terminal summary

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Edit this set: Chapter 2 AdvAcc (then SAVE)

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Exit Ticket for today:Exit Ticket for today:Audit Your Understanding 2-2Audit Your Understanding 2-2

1. What does 2/10, n/30 mean?

2. Why are credit card sales and cash sales recorded together in the sales journal?

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LESSON 2-2

In a Word Document, SaveAS: Chapter2-2AYUYourNameAnd drop in my Inbox today!