Section 1The Sales Journal

1
Chapter 16
Section 1 The Sales Journal

• What Youll 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.

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Section 1 The Sales Journal (cont'd.)
Chapter 16

Why Its Important The use of the sales journal
provides a systematic method of keeping track of
sales on account.

• Key Terms
• special journals
• sales journal
• footing

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Section 1 The Sales Journal (cont'd.)
Chapter 16

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

Journal Transaction

Sales Journal sales of merchandise on account
Cash Receipts Journal receipt of cash

Purchases Journal purchase of any asset on account
Cash Payments Journal payment of cash, including
payments by check
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Section 1 The Sales Journal (cont'd.)
Chapter 16

The Sales Journal The sales journal is a special
journal used to record sales of merchandise on
account.

• Record the amount of the
• merchandise sold on account

• Record the amount of sales tax on
• the sale

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

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Section 1 The Sales Journal (cont'd.)
Chapter 16

Recording Sales of Merchandise on Account
Business Transaction

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

JOURNAL ENTRY

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Section 1 The Sales Journal (cont'd.)
Chapter 16

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.



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Section 1 The Sales Journal (cont'd.)
Chapter 16

Footing, Totaling, Proving, and Ruling the Sales
Journal



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Section 1 The Sales Journal (cont'd.)
Chapter 16

Posting the Total of the Sales Credit
Column Next, transfer the amount in the Sales
column to the general ledger.



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Section 1 The Sales Journal (cont'd.)
Chapter 16

Posting the Total of the Sales Tax Payable Credit
Column Next, transfer the amount in the Sales
Tax Payable column to the general ledger.



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Section 1 The Sales Journal (cont'd.)
Chapter 16

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.



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Section 1 The Sales Journal (cont'd.)
Chapter 16

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.





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Chapter 16
Section 2 The Cash Receipts Journal

• What Youll Learn
• How to record transactions in the cash receipts
  journal.
• How to post from the cash receipts journal to
  accounts receivable subsidiary ledger accounts.
• How to post amounts in the General Credit column
  of the cash receipts journal to general ledger
  accounts.
• How to post column totals from the cash receipts
  journal to the general ledger.
• How to prepare a schedule of accounts receivable.

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Why Its Important Use of the cash receipts
journal will save time and reduce errors.

• Key Terms
• cash receipts journal
• schedule of accounts receivable

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

The Cash Receipts Journal A special journal used
to record all cash receipt transactions.



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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Recording Cash from Charge Customers
Business Transaction

On December 5, On Your Mark received 212 from
Casey Klein to apply on account, Receipt 301.

JOURNAL ENTRY

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Recording Cash Received on Account, Less a Cash
Discount
Business Transaction

On December 12, On Your Mark received
1,470 from South Branch High School Athletics
in pay- ment of Sales Slip 51 for 1,500 less
the discount of 30, Receipt 302.

JOURNAL ENTRY

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Recording Cash Sales
Business Transaction

On December 15, On Your Mark records the cash
sales for the first two weeks of December,
3,000, and 180 in related sales taxes, Tape 55.

JOURNAL ENTRY

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Posting to the Accounts Receivable Subsidiary
Ledger Daily postings are made from the Accounts
Receivable Credit column to the accounts
receivable subsidiary ledger.



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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Posting the General Credit Column Daily postings
are made from the General Credit column of the
cash receipts journal to the appropriate accounts
in the general ledger.



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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Footing, Totaling, Proving, and Ruling the Cash
Receipts Journal To complete the cash receipts
journal, follow these steps


1. Draw a single rule across the six amount
columns, below the last transaction. Done to show
addition. 2. Foot the columns. 3. Test for the
equality of debits and credits.

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Footing, Totaling, Proving, and Ruling the Cash
Receipts Journal (cont'd.)

4. In the Date column, on the line below the
single rule, enter the date the journal is being
totaled. 5. On the same line in the Account Name
column, enter the word Totals. 6. Enter the
columns totals, in ink, just below the
footings. 7. Double-rule the amount columns.


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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Posting Column Totals to the General Ledger

• There are six amount columns in the cash receipts
  journal used by On Your Mark. Only five of the
  column totals, however, are posted to the general
  ledger.
• The total of the General Credit column is not
  posted. The entries in this column have already
  been posted, individually, to the general ledger
  accounts.

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Posting Column Totals to the General Ledger
(cont'd.)

• The total in each of the other five amount
  columns is posted to the general ledger account
  named in the column heading.

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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Proving the Accounts Receivable Subsidiary Ledger

A schedule of accounts receivable is a report
listing each charge customer, the balance in the
customers account, and the total amount due from
all customers.


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Section 2 The Cash Receipts Journal (cont'd.)
Chapter 16

Proving the Accounts Receivable Subsidiary Ledger
(cont'd.)