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

2

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

3

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

4

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

5

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

6

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

7

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

8

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

9

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

10

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

11

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

12

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