Journalizing Sales and Cash Receipts Using Special Journals
A special journal used to record only sales
of merchandise on account
A cash discount on sales taken by a
customer.
The report that summarizes the cash and
credit card sales of a point-of-sale
terminal
A sale in which a credit card is used for the
total amount of the sale at the time of the
transaction
A special journal used to record only cash
receipt transactions
A form prepared by the vendor showing
the amount deducted for returns and
allowances
A computer used to collect, store, and
report all the information of a sales
transaction
The process of preparing a batch report of
credit card sales from a point-of-sale
terminal
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.
A report of credit card sales produced by a
point-of-sale terminal
When cash is received for a sale on account
within the discount period, the amount credited
to Accounts Receivable is reduced by the amount
of the discount.
Regardless of when merchandise is sold,
revenue should be recorded when cash is
received.
Point-of-sale terminals use UPC symbols to
obtain the description and price of
merchandise sold.
Because Sales Discount is a contra account
to Sales, it has a normal credit balance.
Purchases and sales of merchandise are the
two major activities of a merchandising
business.
Cash is proved when the total of the Cash
Debit column of a cash receipts journal
equals the next unused check stub.
A terminal summary reports total cash and
credit card sales of a point-of-sale
terminal.
When a customer is granted credit for
merchandise returned, Accounts
Receivable is debited.
The amount of sales tax collected is an
asset of the business until paid to the state
government.
Using a terminal summary as a source
document for weekly cash and credit
card sales is an application of the
accounting concept.
Matching Expenses with Revenue
Realization of Revenue
Objective Evidence
Business Entity
The amount of cash received for a sale
on account of $1,000.00 plus sales tax of
$80 when the cash is received within the
2 percent discount period is.
1058.40
1080.00
1053.60
1062.00
Sales Returns and Allowances is:
A contra expense account
A revenue account
An expense account
A contra Revenue Account
Sales invoices should be
Prepared in triplicate
Numbered in sequence
Used as source documents for sales on account
All of the above
The amount of sales tax on a sale is
calculated as the price of goods
Plus the sales tax rate
Minus the sales tax rate
Times the sales tax rate
Divided by the sales tax rate
For a sale on account of $1,000.00 plus
sales tax of $80.00, the amount
recorded in the Accounts Receivable
Debit column of a sales journal is
$1,080.00
$80.00
$920.00
$1,000.00
When merchandise is sold on account
and sales tax is also collected,
Sales is debited for the price of the goods.
Accounts Receivable is credited for the total sale and sales tax
The accounts receivable account balance is increased.
The sales tax is not reported
Sales discounts are recorded in
Cash Receipts Journal
Sales Journal
General Journal
Batch Report