Transcript Journalizing Sales and Cash Receipts Using Special Journals

Journalizing Sales and Cash
Receipts Using Special Journals
Chapter 10, Section 2
Processing Sales Transactions
• Cash Sale – cash is received at time of
transaction
• Credit Card Sale – credit card is used for the
total amount of the sale at the time of the
transaction
• Point-of-Sale (POS) Terminal – computer
used to collect, store, and report all the
information of a sales transaction
• Terminal Summary – report that
summarizes the cash and credit card sales of a
POS terminal
Processing Sales Transactions
UPC (Universal
Product Code)
Cash Register
Receipt
Point-of-Sale (POS)
Terminal Receipt
(continued on next slide)
Processing Sales Transactions
Terminal Summary
Batch Report
(continued from previous slide)
Processing Credit Cards
• Batch Report – report of credit card sales
produced by a POS terminal
• Batching Out – process of preparing a batch
report of credit card sales from a POS terminal
• Bank handles the further processing of credit
cards through EFT.
• Business pay a percentage of credit card sales as
a fee for credit card processing.
Cash Receipts Journal
• All cash receipts are recorded in this journal
• Cash and credit card sales are treated the same
and recorded in one transaction
Recording Cash and Credit Card Sales
November 4. Recorded cash and credit card sales, $5,460.00, plus
sales tax, $327.60; total, $5,787.60. Terminal Summary 34.
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Write the date.
Place a check mark in the Account Title column.
Write the terminal summary document number.
Place a check mark in the Post. Ref. column.
Write the sales amount.
Write the sales tax amount.
Write the cash amount.
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Sales Discount
• What is a cash discount?
▫ Discount to encourage prompt payment
▫ Terms: 2/10, n/30
• Sales Discount – a cash discount on sales
taken by a customer
▫ Contra account to Sales
Sales Discount
Debit
Normal Balance
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Journalizing Cash Receipts on Account
November 6. Received cash on account from Country Crafters,
$2,162.40, covering S69. Receipt No. 90.
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Write the date.
Write the customer’s name.
Write the receipt number.
Write the credit amount.
Write the debit amount.
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Journalizing Cash Receipts on Account
with Sales Discount
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.
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1. Write the date.
2. Write the customer’s name.
3. Write the receipt number.
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4. Write the original invoice amount.
5. Write the amount of sales discount.
6. Write the debit to cash.
Totaling, Proving, and Ruling
At the end of each month, cash receipts journal
must be totaled, proved and ruled.
Proving Cash
Cash is proved at the end of each month to be sure
the checkbook and Cash account agree.
Cash on hand at the beginning of the month
$17,647.44
(Beginning balance in Cash account)
Plus total cash received during the month
38,668.80
(Cash Debit column total, cash receipts journal)
Equals total
Less total cash paid during the month
$56,316.24
32,901.40
(Cash Credit column total, cash payments journal)
Equals cash balance on hand at end of month
$23,414.84
Checkbook balance on the next unused check stub
$23,414.84
Problems
• Work Together 10-2 (Text pg. 284)
• On Your Own 10-2 (Text pg. 284)
• Application 10-2 (Text pg. 289)
• Study Guide 10