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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 10-2LESSON 10-2
Journalizing Cash Receipts Using a Cash Receipts Journal
Original created by M.C. McLaughlin, Thomson/South-WesternModified by Deborah L. Burns, Johnston County Schools, West Johnston High School
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
Journalizing Cash Receipts Using a Cash Journalizing Cash Receipts Using a Cash Receipts JournalReceipts 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 Cash Register
ReceiptCash Register
Receipt
UPC (Universal Product Code)UPC (Universal Product Code)
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
PROCESSING SALES TRANSACTIONSPROCESSING SALES TRANSACTIONS page 277
Point-of-Sale (POS) Terminal Receipt
Point-of-Sale (POS) Terminal Receipt
(continued on next slide)
A computer used to collect, store, & report all the information of a sales transactions is called a point-of-sale (POS) terminal
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
PROCESSING SALES TRANSACTIONSPROCESSING SALES TRANSACTIONS page 277
Terminal SummaryTerminal Summary
(continued from previous slide)
The report that summarizes the cash & credit card sales of a point-of-sale terminal is called a terminal summary
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
PROCESSING SALES TRANSACTIONSPROCESSING SALES TRANSACTIONS page 277
Batch ReportBatch Report
(continued from previous slide)
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
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
CASH RECEIPTS JOURNALCASH 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
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
CASH AND CREDIT CARD SALESCASH AND CREDIT CARD SALES
1122
3344
55 66
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.
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.
77
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
CASH RECEIPTS ON ACCOUNTCASH RECEIPTS ON ACCOUNT
11 22 33 44 55
page 280
November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90.
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.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
Calculating Cash Receipts on Account with Calculating Cash Receipts on Account with Sales DiscountSales 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 discountSales discounts are often written as 2/10, n/30
2% = sales discount if paid within 10 days10 = days amount is eligible for the 2% discount n/30 = days until total amount is due
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
JOURNALIZING CASH RECEIPTS ON JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTSACCOUNT WITH SALES DISCOUNTS
11 22 33 44 55 66
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.
4. Write the original invoice amount.1. Write the date.
2. Write the customer’s name.
3. Write the receipt number.
5. Write the amount of sales discount.
6. Write the debit to cash.
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
TOTALING, PROVING, AND RULING A TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNALCASH 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
CENTURY 21 ACCOUNTING © Thomson/South-Western
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LESSON 10-2
TERMS REVIEWTERMS REVIEW
cash sale credit card sale point-of-sale (POS) terminal terminal summary batch report batching out cash receipts journal sales discount
page 284