CHAPTER FIFTEEN
THE SALES
JOURNAL
15-3
THE SALES JOURNAL
Chapter Outcomes:
1. Record sales of merchandise on credit
in a sales journal.
2. Total, prove, and rule the sales
journal.
3. Post from the sales journal.
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15-4
Recording Transactions in the
Sales Journal
One way to reduce the repetition in
journalizing and posting is to have a
special journal for all sales of
merchandise on credit.
This special journal is called a sales
journal.
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Accounting Fundamentals, 7/e
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15-5
Advantages to using the Sales
Journal
All entries for sales of merchandise
on credit are grouped in one place.
Important facts about each
transaction are written on a single
line.
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Accounting Fundamentals, 7/e
© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
15-6
Advantages to using the Sales
Journal (continued)
There is no need to enter account
titles or to write a long explanation
for each transaction.
The Sales Journal allows for great
division of labor–one person can be
put in charge of entering sales.
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Accounting Fundamentals, 7/e
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15-7
Posting From the Sales Journal
Posting is simplified using the Sales
journal.
Money columns are pencil-footed
and the totals are posted to the
appropriate accounts.
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Accounting Fundamentals, 7/e
© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
15-8
Posting From the Sales Journal
(continued)
The single posting to each account
saves time and reduces the
possibility of error.
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Accounting Fundamentals, 7/e
© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
15-9
Accounting Terminology
•Cross-footing
•Posting reference S
•Sales journal
•Special journal
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Accounting Fundamentals, 7/e
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15-10
Chapter Summary
• The sales journal is a special
journal that is used for recording
sales of merchandise on credit. It
allows a business to save time and
avoid repetition in the journalizing
and posting of its credit sales.
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Accounting Fundamentals, 7/e
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15-11
Chapter Summary (continued)
• The Sales Journal organizes, in one place,
all the information about credit sales. The
columns further organize all the
information for one transaction on a single
line.
• The information needed for entries in the
sales journal is taken from copies of the
sales invoices or from copies of the sales
slips.
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Accounting Fundamentals, 7/e
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15-12
Chapter Summary (continued)
• At the end of the month, the figures in
the sales journal are added. The
column totals are posted to the
general ledger as a debit to the
Accounts Receivable account, a
credit to the Sales Tax Payable
account, and a credit to the Sales
account.
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Accounting Fundamentals, 7/e
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15-13
Chapter Summary (continued)
•Cross-footing is the process of
checking the accuracy of column
totals.
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Accounting Fundamentals, 7/e
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15-14
Chapter Summary (continued)
• The form of the journal can be
tailored to meet the individual needs
of each business.
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Accounting Fundamentals, 7/e
© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
15-15
Investigating on the Internet
As a research assignment, access the web
site for MAB® paints and report the
sources of information that might
concern sales of merchandise.
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Accounting Fundamentals, 7/e
© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
15-16
Topic Quiz
Answer the following true/false questions:
1. The sales journal is a special journal
that is used for recording sales of
merchandise on credit.
2. The sales journal form can be modified
to meet the needs of each business.
3. An advantage for using a sales
journal is that there is no need to
enter account titles or to write long
explanations of each transaction.
McGraw-Hill/Irwin
Accounting Fundamentals, 7/e
TRUE
TRUE
TRUE
© 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.