Journalizing Sales and Cash Receipts Using Special Journals

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Customer – a person or business to whom merchandise or services are sold

Sales tax – a tax on a sale of merchandise or services

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Sales journal – a special journal used to record ONLY sales of merchandise 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.

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7

Cash sale – 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

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

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

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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)

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Terminal SummaryTerminal Summary

Batch ReportBatch Report

(continued from previous slide)

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Batch report – a report of credit card sales produced by a point-of-sale terminal

Batching out – the process of preparing a batch report of credit card sales from a point-of-sale terminal

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Cash receipts journal – a special journal used to record ONLY cash receipt transactions

Sales discount – a cash discount on sales taken by a customer

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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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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.

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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.

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Sales return – credit allowed to a customer for the sales price of returned merchandise, resulting in a decrease in the vendor’s accounts receivable

Sales allowance – credit allowed to a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor’s accounts receivable

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Credit memorandum (CM) – a form prepared by the vendor showing the amount deducted for returns and allowances

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March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $62.01. Credit Memorandum No. 41.

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1. Write the date. 6. Write the sales tax amount.

2. Write Sales Returns and Allowances. 7. Write the accounts to be credited.

3. Write CM and the credit memorandum number.

8. Draw a diagonal line in the Post. Ref. column.

4. Write the amount of the sales return. 9. Write the total accounts receivable amount.5. Write Sales Tax Payable.