Chapter 11- Journalizing Sales and Cash Receipts

Sales Tax

Customer- A person or business to whom merchandise or services are sold

Sales Tax- A tax on a sale of merchandise or services



11-1 Journalizing Sales and Cash Receipts

Sales of Merchandise

Cash Sale- A sale in which cash is received for the total amount of the sale at the time of the transaction

Credit Cash Sale- A sale in which a credit card is used for the total amount of the sale at the time of the transaction

• Major bank-approved credit cards use VISA, MasterCard, and Discover Card

Cash and Credit Sales

Journalizing Cash and Credit Card Sales

1. Write the date


2. Place a check in the Account Title coulmn to show that no title is to be written


3. Write the cash register tape number


4. Place a check in the Post Ref. column to show no amounts on the line are to be posted individually


5. Write the sales amount


6. Write the sales tax amount


7. Write the cash amount

Cash Receipts On Account

Journalizing Cash Receipts On Account

1. Write the date


2. Write only the customer's name in the Account Title column


3. Write the receipt number


4. Write the credit amount


5. Write the debit amount

11-2 Proving and Ruling an Expanded Journal

Carrying Totals Forward on the Left Page (and Right Page)

Ruling an Expanded Journal to Carry Totals Forward

1. Rule a single line across all amount coulmns directly below the last entry to indicate that all the columns are to be added (left and right pages)


2. On the next line write the date in the date coulmn (left page)


3. Write the words Carried Forward in the Account Title column (left page)


4. Place a check in the Post Ref. column (left page)


5. Write each column total below the single line (both pages)


6. Rule double lines below the column totals across all amount columns to show that totals are correct (both pages)

Starting a New Expanded Journal Left (and Right) Page

Forwarding Totals to a New Journal Page

1. Write the journal page number
2. Write the date
3. Write the words Brought Forward in the Account Title column
4. Place a check mark in the Post Ref. column
5. Record the column totals brought forward

Proving and Ruling the Left (and Right) Page of an Expanded Journal at the End of the Month

Ruling an expanded journal at the end of the month

1. Rule a single line across all column totals
2. On the next line, write the date
3. Write the word Totals in the Account Title column
4. Write each column total below the single line
5. Rule double lines across all amount columns