Chapter 11 Sales and Cash Receipts journal Terms

Chapter 11 Sales and Cash Receipts journal

Terms you need to know Customer – a person or business to who merchandise or services are sold. n Sales Tax – a tax on a sale of merchandise or services. n

Sales journal Sales Journal Account Debited Date Sales No Account Rec. Debit Post Ref Sales Tax Payable Credit Sales Credit

Nov 3. Sold merchandise on account to Children’s Paradise, $816. 00 plus sales tax, $48. 96; total, $864. 96. Sales Invoice No. 76 Sales Journal Post Ref Account Rec. Debit Sales Credit Sales Tax Payable Credit Date Account Debited Sales No 3 -Nov Childrens Paradise 76 864. 96 816 48. 96

“ On your own” 10 -1

Cash Receipts Journal

Terms you need to know If you have your textbook look at page 276 n Cash Sale – A sale in which cash is received for the total amount of the sale. n Credit Card Sale – A Sale in which cash is received for the total amount of the sale.

Cash Receipt journal Cash Receipt Journal General Account Title Date Doc No. Post Ref Debit Acct Rec Credit Sales Tax Payable Credit Sales Credit Cash Debit

November 4 Recorded Cash and Credit card sale, $5, 460. 00 plus sales tax, $327. 60 total $5787. 60. Cash Tape No 4 Cash Receipt Journal General Date Account Title Doc No. Post Ref Debit Credit Acct Rec Credit Sales Tax Payable Cash Debit Credit 4 -Nov T 4 5460 327. 6 5787. 6

Nov. 6 Received Cash on account from Fiesta Costumes $2162. 40, covering s 69 Receipt No. 90 Cash Receipt Journal Doc Date Account Title No. 4 -Nov 6 -Nov Fiesta Costumes Post Ref Debit Credit Acct Rec Credit General Sales Credit Sales Tax Payabe Credit Cash Debit T 4 5460 327. 6 5787. 6 R 90 2162. 4

When we give a discount November Received cash on account from Cumberland to 7. our customer. Center, $1, 176. 00, covering Sale Invoice No. 74 for $1, 200, less 2% discount, $24. 00. Receipt No. 91 Sales Discount- terms of contract 2/10 N 30 Cash Receipt Journal Doc Date Account Title No. 4 -Nov 6 -Nov 7 -Nov Fiesta Costumes T 4 Post Ref Debit Credit Acct Rec Credit General Sales Credit Sales Tax Payable Credit 5460 327. 6 Sales Discoun t Debit Cash Debit 5787. 6 2% discount if paid within 10 days of sale or balance is paid in 30 R 90 2162. 4 Cumberland Center R 91 1200 24 2162. 4 1176

On your own page 284 in your textbook.

Recording Transactions Using a General Journal Sales Return and Allowance – When we sell something and have it returned. n Source document is the credit memorandum n We have to return the money owed for the item plus the taxes that went with it…. n

When someone buys something for us, this is how we break it down. . Date Jan 6 Sale amount (what we Account Title get) Doc T 6 No. Post Ref Sales tax – Cash Receipt Journal what the Acct General government Rec gets Debit Credit Sales Credit Candy bar $1. 00 Slurpee $1. 00 Candy bar . 05 Slurpee. 05 Payable Credit 2. 00 . 10 So if someone buys candy bar and a slurpee from us Total Received at Sales register Tax Discoun Cash Debit t Debit Candy bar 1. 05 Slurpee 1. 05 2. 10 Total of $2. 10 Now lets pretend that someone returned the candy bar back to our store. What do we do? How much do we give them back?

So if they returned the candy bar what do we give them back? Candy bar $1. 00 Slurpee $1. 00 Candy bar. 05 Slurpee. 05 Candy bar 1. 05 Slurpee 1. 05 General Journal Account Title Total of $2. 10 Page 1 Doc No Post Ref Debit Credit 1. 00 Date Jan 6 Sales Return and Allowance Sales Tax Payable . 05 Cash 1. 05

March 11, Granted Credit to Village Crafts for merchandise returned, $58. 50, plus sales tax, $3. 51, from S 160; total, $62. 01. Credit Memorandum No. 41 General Journal Account Title Page 1 Doc No Post Ref Debit Credit 58. 50 Date Jan 6 Sales Return and Allowance Sales Tax Payable Accounts Recievable/Village Crafts 3. 51 62. 01

Problems 11 -1, 2, 3, 4 n Computer Problem 11 -3 n