1 / 16

CHAPTER 10

CHAPTER 10. Journalizing Sales & Cash Receipts Using Special Journals. 10-1 JOURNALIZING SALES ON ACCOUNT USING A SALES JOURNAL. page 270. A tax on the sale of merchandise is called Sales Tax Stated as a percentage. Need accurate records of (1)total sales (2)total sales tax collected.

illana-leach
Download Presentation

CHAPTER 10

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CHAPTER 10 Journalizing Sales & Cash Receipts Using Special Journals

  2. 10-1 JOURNALIZING SALES ON ACCOUNT USING A SALES JOURNAL page 270 • A tax on the sale of merchandise is called Sales Tax • Stated as a percentage. • Need accurate records of (1)total sales (2)total sales tax collected. • The amount of sales tax collected is a liability until paid to the the government agency.

  3. SALES OF MERCHANDISE ON ACCOUNT page 271 A sale of merchandise may be (1) on account or (2) for cash. A sale of merchandise increases revenue. Revenue is recorded at time of sale NOT when cash is received. A sale for which cash will be received at a later date is known as a sale on account or charge sale.

  4. SALES JOURNAL page 272 A sales journal is a special journal used ONLY to record sales of merchandise on account.

  5. SALES INVOICEA source document for sales on account page 272

  6. SALE ON ACCOUNT page 273 November 3. Sold merchandise on account to Village Crafts, $540.00, plus sales tax, $32.40; total, $572.40. Sales Invoice No. 76. 1 2 3 4 5 6 1. Write the date. 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. 6. Write the sales tax amount.

  7. TOTALING, PROVING, AND RULING A SALES JOURNAL page 274 At the end of each month Hobby Shack totals, proves, and rulesits sales journal. Prove and rule just like all other journals.

  8. Cash Register Receipt UPC (Universal Product Code) Point-of-Sale (POS) Terminal Receipt 10-2 JOURNALIZING CASH RECEIPTS USING A CASH RECEIPTS JOURNAL pages 276- 277 Processing Sales Transactions • 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. • If a credit card is used it is called a charge sale. A computer used to collect, store, and report all info of a sales trans. is a POS terminal. Is scanned in into POS terminal (continued on next slide)

  9. Terminal Summary Batch Report PROCESSING SALES TRANSACTIONS page 277 Summarizes cash & credit card sales of a point of sale terminal. A report of credit card sales produced by a POS terminal. (continued from previous slide)

  10. CASH RECEIPTS JOURNAL page 278 A cash receipts journal is a special journal used ONLY to record cash receipt transactions. • To encourage early payment Hobby Shack allows customers who pay • early to take a deduction from the invoice amount called a sales discount. • Customer pays less than invoice amount that was recorded in sales account. • Sales discounts reduce the amount of cash HS receives on sales on account. • Use special amount columns to record.

  11. 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.

  12. 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.

  13. 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. $1,200.00 x 2% = $24 sales discount

  14. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL page 283 At the end of each month Hobby Shack totals, proves, and rulesits cash receipts journal. Prove and rule just like all other journals.

  15. 10-3 RECORDING TRANSACTIONS USING A GENERAL JOURNAL page 285 Credit Memorandum for Sales Returns & Allowances • Sales Return - Credit allowed for the sales price of returned merchandise, resulting in a decrease in the vendor’s account receivable. • Sales Allowance - Credit allowed for part of the sales price of merchandise that is not returned, decreasing vendor’s accounts receivable. • Credit Memo- source doc. prepared by vendor showing amount deducted for returns and allowances.

  16. 5 JOURNALIZING SALES RETURNS AND ALLOWANCES page 286 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. 2 4 1 3 6 9 8 7 1. Write the date. 6. Write the sales tax amount. 2. Write Sales Returns and Allowances. 7. Write the accounts to be credited. 8. Draw a diagonal line in the Post. Ref. column. 3. Write CM and the credit memorandum number. 9. Write the total accounts receivable amount. 4. Write the amount of the sales return. 5. Write Sales Tax Payable.

More Related