12.1 Cash Sales and Sales on Account

1. 12.1 Cash Sales and Sales on Account Complete a cash proof form Calculate sales invoice and credit memo totals Calculate a customer account balance Lesson 12.1

2. Cash Registers • Cash registers provide a place to keep cash and a means to record cash sales and payments. • Employees who use cash registers are called cash register clerks or cashiers. Lesson 12.1

3. Computer Terminals • Most cash registers are computer terminals with a display screen and a scanner that is connected to a computer. • The scanner reads bar codes printed on the items being purchased. • The bar codes tell the computer the department, brand, size, and price of each item bought. Lesson 12.1

4. Display Screen and Cash Register Receipt • This information is shown on the display screen and printed on a cash register receipt. • The computer also finds the sales tax, totals the sale, and updates inventory records. • When the clerk keys in the amount received from the customer, the correct change is displayed on the screen. • The computer also keeps a running total of sales. Lesson 12.1

5. Change Fund • Cashiers put money in the cash register drawer when they start work so they can make change. • This money is called a change fund. • While they work, they take in and pay out cash. • At the end of their work period, cashiers take a reading of total sales for their register. • Then they have to prove cash. Lesson 12.1

6. Proving Cash • Proving cash means counting the money in the drawer and checking this amount against the cash register readings to see if the right amount is on hand. • A cash proof form is used for this purpose. • If you have less cash than you should, you are cash short. • If you have more cash than you should, you are cash over. Lesson 12.1

7. Sales Invoice • When a seller sells goods to a buyer on credit, the seller gives the customer a sales invoice. • A sales invoice lists the goods sold and delivered to the buyer. • The buyer calls this form a purchase invoice. • On the sales invoice the unit price is multiplied by the quantity to find the price extension. • The price extensions are added together to find the total amount of the invoice. Lesson 12.1

8. Sample Sales Invoice Lesson 12.1

9. Credit Memo • When merchandise bought on credit is returned, the seller does not return the buyer’s money. • Instead, the seller reduces the buyer’s account balance by the amount of the return. • The seller notifies the buyer about the reduction by sending the buyer a credit memorandum, or credit memo. Lesson 12.1

10. Sample Credit Memo Lesson 12.1

11. BUSINESS TIP A credit memo may be issued when the buyer returns defective goods to the seller or when the seller gives a price reduction for damaged goods reported by the buyer. Sometimes a buyer returns stock for other reasons. If so, the seller may charge a restocking fee that is deducted from the credit the buyer would normally receive. Lesson 12.1

12. Customer Account Balance • Most people use credit cards when they do not pay cash for a purchase. • Businesses whose customers are other businesses often let them buy on credit, or on account. • The seller then keeps records for each customer to show how much each customer owes. Lesson 12.1

13. Common Form of Customer Account Lesson 12.1