Procedures
● With a partner, write down the step-by-step
procedures of when you approach the cash
register at a grocery store
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 1
Lesson 10-3
Processing Sales Transactions
LO4
● A sale in which the customer pays for the total amount of the
sale at the time of the transaction is called a cash sale.
● Credit card and debit card sales are treated as cash sales
because the business receives its cash in a very short time.
● A specialized computer used to collect, store, and report all
the information about a sales transaction is called a point-ofsale (POS) terminal.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 2
Lesson 10-3
Processing Sales Transactions
LO4
● When processing sales, sales clerk uses scanning device to
scan Universal Product Code (UPC) symbol on item
● POS terminal matches number represented by UPC symbol with
merchandise number to obtain description and price of merchandise
● The report that summarizes the cash and credit card sales of a
point-of-sale terminal is called a terminal summary.
● Also known as Z-tape
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 3
Lesson 10-3
Terminal Summary
LO4
● Credit card will
include both debit
and credit cards in
this chapter
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 4
Lesson 10-3
Processing Credit Cards
LO4
● Sales information for credit card sales is stored in
the POS terminals.
● A report of credit card sales produced by a pointof-sale terminal is called a batch report.
● A batch report can be detailed, showing every credit
card sale.
● Or, the batch report can be a summary, showing only
the number and total of sales by credit card type.
● The process of preparing a batch report from a
point-of-sale terminal is called batching out.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 5
Lesson 10-3
Batch Report
LO4
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 6
Closure
● Fist of Five:
1.
2.
3.
4.
5.
No idea
Somewhat unclear
Comfortable
Would test well and comfortable
Can teach this material
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 7
Frame of Reference:
● Focus on topic in frame on center desk:
● Write down ideas you have regarding procedures
to be followed for topic
● How do you have this knowledge that have led
you to believe this?
● After writing, share ideas with other classmates in
circle
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 8
Example
● ThreeGreen has contract with CreditCorp to process
credit card sales
● ThreeGreen batches out and POS terminal transmits
summary batch report to CreditCorp
● CreditCorp combine reports of all customers and
submits to VISA or MasterCard (credit card
associations)
● VISA or MasterCard collects funds from banks that
issued cards and transfers funds to CreditCorp, who
then deposits money into account of ThreeGreen
within two-to-three business days
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 9
Visual
● Put the pieces of paper in proper order for
when businesses “batch out”
● Be sure to answer the questions on the three
pieces of paper that are italicized
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 10
Pair & Share
● What is the purpose of each special amount
column within the cash receipts journal?
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 11
Lesson 10-3
Cash Receipts Journal
.
LO4
● A cash receipts journal is a special journal
used to record only cash receipt transactions.
● A cash discount on a sale taken by the
customer is called a sales discount.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 12
Cash and Credit Card Sales
● Terminal summaries serve as the source
document for weekly cash and credit card
sales transactions
● Total of terminal summary recorded as single
cash sale transaction
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 13
Cash and Credit Card Sales
● Most businesses batch out at the end of every
business day
● Cash from sales deposited directly in bank
● Cash from credit card sales received two or
three days later when transferred into
business’ account
● These two deposits equal total sales reported on
terminal summary
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 14
Lesson 10-3
Cash and Credit Card Sales
LO4
Cash
November 4. Recorded cash and credit card
sales, $6,280.00, plus sales tax, $376.80; total,
$6,656.80. Terminal Summary 35.
Date
Terminal Summary Number
1
3
6,656.80
Sales
6,280.00
Sales Tax Payable
376.80
2
4
5
6
7
Check
Mark
Check
Mark
Sales
Sales Tax
Payable
Cash
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 15
Cash Receipts on Account
● Receipts prepared in duplicate
● Original receipt given to customer
● Copy of receipt used as source document for cash
receipt on account transaction
● Accounting Concept Objective Evidence
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 16
Lesson 10-3
Cash Receipts on Account
November 4. Received cash on account
from Edmonds Hospital, $2,516.80,
covering S448. Receipt No. 610.
LO5
Cash
2,516.80
Accounts Payable
2,516.80
2 Customer’s Name
1 Date
3
Receipt
Number
4
Sales Invoice
Amount
© 2014 Cengage Learning. All Rights Reserved.
Cash Received
5
SLIDE 17
Lesson 10-3
Calculating Cash Receipts on Account with
Sales Discount
Sales
Invoice
Amount
$1,450.00
×
Sales
Discount
Rate
=
Sales
Discount
×
2%
=
$29.00
© 2014 Cengage Learning. All Rights Reserved.
LO5
SLIDE 18
Lesson 10-3
Journalizing Cash Receipts on Account with
Sales Discounts
LO5
Cash
November 5. Received cash on account from
Palmer Dentistry, $1,421.00, covering Sales
Invoice No. 462 for $1,450.00, less 2% discount,
$29.00. Receipt No. 611.
1,421.80
Accounts Receivable
1,450.00
Sales Discount
29.00
2 Customer’s Name
1 Date
3
4 Original Sales Amount
Receipt Number
Sales Discount 5
© 2014 Cengage Learning. All Rights Reserved.
6 Cash
Received
SLIDE 19
The Audit Challenge
● Those who record answer on white board first
and within shortest amount of time, while
answering correctly, wins
● Individual Challenge now, with group
challenge on the way
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 20
Lesson 10-3
Lesson 10-3 Audit Your Understanding
1. How does a POS terminal determine the price
of an item?
ANSWER
Before any sale is entered, the number,
description, price, and quantity on hand of
each item of merchandise are stored in the
POS terminal.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 21
Lesson 10-3
Lesson 10-3 Audit Your Understanding
2. What are the two types of batch reports?
ANSWER
A batch report can be detailed, showing
each credit card sale, or a summary of the
number and total of sales by credit card
type.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 22
Lesson 10-3
Lesson 10-3 Audit Your Understanding
3. What is meant by 2/10, n/30 credit terms?
ANSWER
If a customer pays the amount owed
within 10 days, the sales invoice amount is
reduced 2%. Otherwise, the net amount is
due in 30 days.
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 23
Class Activity
● 10-3 Work Together
● 10-3 On-Your-Own
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 24
Numbered Heads Together
● Work in teams of five to complete 10-1
Application Problem
● If everyone receives 100% and your team
completes it faster than the other team, your
team wins
● Not only do you need to receive 100% across the
entire team, but you also need to make sure each
team member can explain the process of posting from
the sales journal to either the General Ledger or
Subsidiary Ledger
● Once we are finished, we will follow the same
procedure for 10-2 & 10-3 Application Problems
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 25
Closure
● Pass the Rock: Pass the ball to one another
around the class
● Mention an aspect of today’s lesson that you
learned
● No repeats!
© 2014 Cengage Learning. All Rights Reserved.
SLIDE 26