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LESSON 10-2

LESSON 10-2. Journalizing Cash Receipts Using a Cash Receipts Journal. Original created by M.C. McLaughlin, Thomson/South-Western Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School. Cash Register Receipt. UPC (Universal Product Code).

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LESSON 10-2

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  1. LESSON 10-2 Journalizing Cash Receipts Using a Cash Receipts Journal Original created by M.C. McLaughlin, Thomson/South-Western Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School

  2. Cash Register Receipt UPC (Universal Product Code) Journalizing Cash Receipts Using a Cash Receipts Journal • A sale in which cash is received for the total amount of the sale at the time of the transaction is called a cash sale • A sale in which a credit card is used for the total amount of the sale at the time of the transaction is called a credit card sale LESSON 10-2

  3. Point-of-Sale (POS) Terminal Receipt PROCESSING SALES TRANSACTIONS page 277 • A computer used to collect, store, & report all the information of a sales transactions is called apoint-of-sale (POS) terminal (continued on next slide) LESSON 10-2

  4. Terminal Summary PROCESSING SALES TRANSACTIONS page 277 The report that summarizes the cash & credit card sales of a point-of-sale terminal is called a terminal summary (continued from previous slide) LESSON 10-2

  5. Batch Report PROCESSING SALES TRANSACTIONS page 277 • A report of credit card sales produced by a point of sale terminal is called a batch report • The process of preparing a batch report of credit card sales from a point of sale is called batching out (continued from previous slide) LESSON 10-2

  6. CASH RECEIPTS JOURNAL page 278 • A special journal used to record only cash receipt transaction is called a cash receipts journal • A cash discount on sales taken by a customer is called a sales discount LESSON 10-2

  7. CASH AND CREDIT CARD SALES page 279 November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5,787.60. Terminal Summary 34. 2 4 1 3 5 6 7 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. LESSON 10-2

  8. CASH RECEIPTS ON ACCOUNT page 280 November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90. 1 2 3 4 5 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. LESSON 10-2

  9. Calculating Cash Receipts on Account with Sales Discount • A deduction that a vendor allows on the invoice amount to encourage prompt payment is known as a cash discount. • A cash discount on sales is called a sales discount • Sales discounts are often written as 2/10, n/30 • 2% = sales discount if paid within 10 days • 10 = days amount is eligible for the 2% discount • n/30 = days until total amount is due LESSON 10-2

  10. JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS page 282 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. 1 2 3 4 5 6 1. Write the date. 4. Write the original invoice amount. 2. Write the customer’s name. 5. Write the amount of sales discount. 3. Write the receipt number. 6. Write the debit to cash. LESSON 10-2

  11. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL page 283 • Total the cash receipts journal at the end of each month • Prove the journal is in balance by making sure the debits equal the credits • Double rule the totals to show the journal has been proved LESSON 10-2

  12. TERMS REVIEW page 284 • cash sale • credit card sale • point-of-sale (POS) terminal • terminal summary • batch report • batching out • cash receipts journal • sales discount LESSON 10-2

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