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LESSON 10-1Journalizing Sales
on Account Using a Sales
Journal
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New Vocabulary• Customer: A person or business
to whom merchandise or services are sold.
• Sales Tax: A tax on the sale of merchandise or services.
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SALES TAX page 270
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SALES OF MERCHANDISE ON ACCOUNT
page 271
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VocabularySales Journal: A special journal
used to record only sales of merchandise on account.
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SALES INVOICE page 272
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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.
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TOTALING, PROVING, AND RULING A SALES JOURNAL
page 274
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Audit Your Understanding
How are sales tax rates usually stated?
• As a percentage of sales
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Audit Your Understanding
Why is sales tax collected considered a liability?
• The amount of sales tax collected is a business liability until paid to the government.
What is the title of the general ledger account used to summarize the total amount due from all charge customers?
• Accounts Receivable
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Work Together & OYO
•P. 275
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LESSON 10-2Journalizing Cash
Receipts Using a Cash Receipts Journal
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New Vocabulary• Cash sale: A sale of which cash is received for the
total amount the sale at the time of the transaction (Includes credit card sales)
• Credit card sale: A sale in which a credit card is used for the total amount of the sale at the time at the transaction
• Point-of-sale terminal: A computer used to collect, store, and report all the information of sales transaction
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PROCESSING CASH SALES TRANSACTIONS
page 277
UPC (Universal Product Code)UPC (Universal Product Code)
Cash Register Receipt
Cash Register Receipt
Point-of-Sale (POS) Terminal Receipt
Point-of-Sale (POS) Terminal Receipt
(continued on next slide)
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New Vocabulary
• Terminal Summary: A report that summarizes the cash and credit card sales of a point-of-sale terminal
Terminal SummaryTerminal Summary
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New Vocabulary
• Batch report: a report of credit card sales produced by a point-of-sale terminal
• Batching out: The process of preparing a batch report of credit card sales from a point-of-sale terminal
Batch ReportBatch Report
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New Vocabulary
• Cash Receipts Journal: A special journal used to record only cash receipt transactions
• Sales discount: the cash discount on sales taken by a customer when paying early
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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.
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CASH RECEIPTS ON ACCOUNT page 280
November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90.
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CASH RECEIPT ON ACCOUNT --with a 2% sales discountpage 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.
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TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL
page 283
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Audit Your Understanding
Who transfers files between the banks involved in the credit card sales?
• The funds are transferred among the banks issuing the credit cards.
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Worked Together & OYO
• P. 284
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LESSON 10-3Recording
Transactions Using a General Journal
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New Vocabulary• Sales return: Credit allowed a customer for the sales price
of returned merchandise, resulting in a decrease in the vendor’s accounts receivable
• Sales allowance: Credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor’s accounts receivable
• Credit memorandum: A form prepared by the vendor showing the amount deducted for returns and allowances
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CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES
page 285
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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.
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Audit Your UnderstandingWhat is the difference between a sales return and a
sales allowance?
• A sales return is credit allowed a customer for the sales price of returned merchandise;
• A sales allowance is credit allowed a customer for part of the sales price of merchandise that is not returned.
What is a source document for journalizing sales returns and allowances?
• Credit memorandum
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Work Together & OYO
• P. 287
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Enjoy the Show…
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Preschooler Test.............
I already knew I was dumber than the fifth graders...but now it's the preschoolers.
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• Which way is the bus below traveling?To the left or to the right?
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• Can't make up your mind?
• Look carefully at the picture again.
• Still don't know?
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were shown this picture and asked the same question.
• 90% of the pre-schoolers gave this answer:
• "The bus is traveling to the left.."
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• When asked, "Why do you think the bus is traveling to the left?“They answered:
• "Because you can't see the door to get on the bus.“
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The End