Special Journals: Sales and Cash ReceiptsSpecial Journals: Sales and Cash Receipts

Making Accounting Relevant

In a merchandising business, revenue

from sales fuels business operations.

Making Accounting Relevant

In a merchandising business, revenue

from sales fuels business operations.

What tactics do businesses in your area use to increase sales?

Section 1 The Sales Journal

Section 1 The Sales JournalWhat You’ll Learn

To identify the special journals and how they are used.

How to record sales of merchandise on account in a sales journal.

How to post from the sales journal to the accounts receivable subsidiary ledger accounts.

How to foot, prove, total, and rule the sales journal.

How to post column totals from the sales journal to the general ledger.

What You’ll Learn To identify the special journals and

how they are used. How to record sales of merchandise on

account in a sales journal. How to post from the sales journal to

the accounts receivable subsidiary ledger accounts.

How to foot, prove, total, and rule the sales journal.

How to post column totals from the sales journal to the general ledger.

Why It’s Important

The use of the sales journal

provides a systematic method of

keeping track of sales on account.

Why It’s Important

The use of the sales journal

provides a systematic method of

keeping track of sales on account.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Key Terms

special journals

sales journal

footing

Key Terms

special journals

sales journal

footing

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Special Journals

Special journals have amount columns used to record debits and credits to specific general ledger accounts.

Special Journals

Special journals have amount columns used to record debits and credits to specific general ledger accounts.

Sales Journal sales of merchandise on account

Sales Journal sales of merchandise on account

Cash Receipts Journal receipt of cashCash Receipts Journal receipt of cash

Purchases Journal purchase of any asset on account

Purchases Journal purchase of any asset on account

Cash Payments Journal payment of cash, including payments by check

Cash Payments Journal payment of cash, including payments by check

Journal TransactionJournal Transaction

The Sales JournalThe sales journal is a special journal

used to record sales of merchandise on account.

The Sales JournalThe sales journal is a special journal

used to record sales of merchandise on account.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Record the amount of the merchandise sold on account

Record the amount of the merchandise sold on account

Record the amount of sales tax onthe sale

Record the amount of sales tax onthe sale

Record the total amount to be received from the customer on account

Record the total amount to be received from the customer on account

Recording Sales of Merchandise on AccountRecording Sales of Merchandise on Account

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Business Transaction

JOURNAL ENTRY

On December 1, On Your Mark sold merchandise on account to Casey Klein for $200 plus $12 sales tax, Sales Slip 50.

Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger

To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger.

Posting a Sales Journal Entry to the Accounts Receivable Subsidiary Ledger

To keep the balances of the customer accounts current, sales journal transactions are posted daily to the accounts receivable subsidiary ledger.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Footing, Totaling, Proving, and Ruling the Sales JournalFooting, Totaling, Proving, and Ruling the Sales Journal

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Posting the Total of the Sales Credit Column

Next, transfer the amount in the Sales column to the general ledger.

Posting the Total of the Sales Credit Column

Next, transfer the amount in the Sales column to the general ledger.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Posting the Total of the Sales Tax Payable Credit Column

Next, transfer the amount in the Sales Tax Payable column to the general ledger.

Posting the Total of the Sales Tax Payable Credit Column

Next, transfer the amount in the Sales Tax Payable column to the general ledger.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Posting the Total of the Accounts Receivable Debit Column

The last amount to be transferred to the general ledger is the Accounts Receivable Debit column.

Posting the Total of the Accounts Receivable Debit Column

The last amount to be transferred to the general ledger is the Accounts Receivable Debit column.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Proving the Sales Journal at the End of a Page

If a business has many transactions in one month, and it is impossible to fit them onto one journal page, the journal page must be totaled and ruled before a new page is started.

Proving the Sales Journal at the End of a Page

If a business has many transactions in one month, and it is impossible to fit them onto one journal page, the journal page must be totaled and ruled before a new page is started.

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

Check Your UnderstandingCheck Your Understanding

1. What are the most commonly used

special journals?

1. What are the most commonly used

special journals?

Section 1 The Sales Journal (cont'd.)Section 1 The Sales Journal (cont'd.)

2. What does an account number

written in parentheses under a

column total mean?

2. What does an account number

written in parentheses under a

column total mean?