Chapter 16
Special Journals: Sales and
Cash Receipts
What You’ll Learn
 Identify the special journals and explain how they
are used in a merchandising business.
 Record transactions in sales and cash receipts
journals.
 Post from the sales and cash receipts journals to
customer accounts in the accounts receivable
subsidiary ledger.
 Foot, prove, total, and rule the sales and cash
receipts journals.
 Post column totals from the sales and cash receipts
journals to general ledger accounts.
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Chapter 16
Special Journals: Sales and
Cash Receipts
What You’ll Learn
 Prepare a schedule of accounts receivable.
 Define the accounting terms introduced in this
chapter.
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Chapter 16, Section 1
The Sales Journal
What Do You Think?
What other terms mean the same as credit sales?
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SECTION 16.1
The Sales Journal
Main Idea
The sales journal is used to record credit sales of
merchandise.
You Will Learn
 the purpose of special journals.
 how to use the sales journal.
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SECTION 16.1
The Sales Journal
Key Terms
 special journals
 sales journal
 footing
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SECTION 16.1
The Sales Journal
Using Special Journals
Each transaction in a general journal requires at least
three journal lines. To improve efficiency merchandising
businesses can use special journals. Special journals
have amount columns used to record debits and credits
to general ledger accounts. The four most commonly
used special journals are:
 sales journal,
 cash receipts journal,
 purchases journal, and
 cash payments journal.
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SECTION 16.1
The Sales Journal
Journalizing and Posting to the Sales
Journal
The sales journal is used to record sales of
merchandise on account.
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SECTION 16.1
The Sales Journal
Recording Sales of Merchandise on Account
To record transactions in the sales journal, move from
left to right following these steps:
 Enter the sales slip date in the Date column.
 Enter the sales slip number is the Sales Slip No.
column.
 Enter the customer’s name in the Customers
Account Debited column.
 Enter the merchandise sold total in the Sales
Credit column.
 Enter the sales tax in the Sales Tax Payable
Credit column.
 Enter the total amount to be received in the
Accounts Receivable Debit column.
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SECTION 16.1
The Sales Journal
Posting a Sale Journal Entry to the
Accounts Receivable Subsidiary Ledger
To post transactions to the accounts receivable
subsidiary ledger, follow these steps:
1. Enter the transaction date in the Date column.
2. Enter the journal letter and page number in the
Posting Reference column.
3. Enter the total amount to be received in the
Debit column.
4. Compute the new balance and enter it in the
Balance column.
5. Place a check mark in the Posting Reference
column in the sales journal.
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SECTION 16.1
The Sales Journal
Posting a Sale Journal Entry to the
Accounts Receivable Subsidiary Ledger
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SECTION 16.1
The Sales Journal
Completing the Sales Journal
Only the amount column totals from the special journals
are posted to the general ledger accounts. For the sales
journal, the column totals posted are
 the Sales Credit,
 the Sales Tax Payable Credit, and
 the Accounts Receivable Debit.
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SECTION 16.1
The Sales Journal
Footing, Proving, Totaling, and Ruling the Sales
Journal
Verify the column totals before posting them to the
general ledger by following these steps:
1. Draw a single rule across the three amount
columns, below the last transaction.
2. Foot the amount columns. Footing is a column
total written in small penciled figures.
3. On separate paper, verify the debit column total
equals the total of the two credit columns.
4. Enter the date in the Date column below the
single rule.
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SECTION 16.1
The Sales Journal
Footing, Proving, Totaling, and Ruling the Sales
Journal
5.
6.
7.
Enter the word Totals on the same line in the
Customer’s Account Debited Column.
Enter the column totals below the footings.
Double-rule the three amount columns.
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SECTION 16.1
The Sales Journal
Footing, Proving, Totaling, and Ruling the Sales
Journal
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SECTION 16.1
The Sales Journal
Posting the Total of the Sales Credit Column
Follow this procedure for posting the Sales Credit
column to the general ledger Sales account:
1. In the Date column, enter the date from the Totals
line of the sales journal.
2. Enter the sales journal letter and page number in
the Posting Reference column.
3. Enter the total from the Sales Credit column of the
sales journal in the Credit column.
4. Compute the new balance and enter it in the
Credit Balance column.
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SECTION 16.1
The Sales Journal
Posting the Total of the Sales Credit Column
5. In the sales journal, enter the Sales account
number, in parentheses, below the double rule in
the Sales Credit column.
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SECTION 16.1
The Sales Journal
Posting the Total of the Sales Tax Payable
Credit Column
Follow this procedure for posting the total of the Sales
Tax Payable Credit column:
1. In the Date column of the Sales Tax Payable
account, enter the date from the Totals line of the
sales journal.
2. Enter the sales journal letter and page number in
the Posting Reference column.
3. Enter the total from the Sales Tax Payable Credit
column of the sales journal in the Credit column.
4. Compute the new balance and enter it in the
Credit Balance column.
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SECTION 16.1
The Sales Journal
Posting the Total of the Sales Tax Payable
Credit Column
5. In the sales journal, enter the Sales Tax Payable
account number, in parentheses, below the double
rule in the Sales Tax Payable Credit column.
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SECTION 16.1
The Sales Journal
Posting the Total of the Accounts Receivable
Debit Column
Follow this procedure for posting the total of the
Accounts Receivable Debit column:
1. In the Date column of the Accounts
Receivable account, enter the date from the
Totals line of the sales journal.
2. Enter the sales journal letter and page number
in the Posting Reference column.
3. Enter the total from the Accounts Receivable
Debit column of the sales journal in the Debit
column.
4. Compute the new balance and enter it in the
Debit Balance column.
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SECTION 16.1
The Sales Journal
Posting the Total of the Accounts Receivable
Debit Column
5.
In the sales journal, enter the Accounts
Receivable account number, in parentheses,
below the double rule in the Accounts
Receivable Debit column.
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SECTION 16.1
The Sales Journal
Proving the Sales Journal at the End of a Page
Sometimes the transactions will not fit on a single page.
When this occurs, the journal page must be totaled and
ruled before a new page is started.
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SECTION 16.1
The Sales Journal
Key Terms Review
 special journals
Journals that have amount columns for recording
debits and credits to specific general ledger
accounts.
 sales journal
A special journal used to record only the sale of
merchandise on account.
 footing
A column total written in small pencil figures.
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