CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 2-2LESSON 2-2

Journalizing and Posting Cash Receipts

CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 2-2

DEPARTMENTAL CASH RECEIPTSDEPARTMENTAL CASH RECEIPTS

8.25% Sales TaxSales Amount Total Invoice Amount+ =

$1,700.00 + = $1,840.25$140.25

Discount RateInvoice Amount Sales Discount× =

$1,840.25 × = $36.812%

2% Sales DiscountTotal Invoice Amount Amount Due in 10 Days– =

$1,840.25 – = $1,803.44$36.81

Terms: 2/10, n/30Invoice paid within 10 days:

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CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 2-2

5. Write the sales discount debit amount.

June 1. Received cash on account from Olympic Productions, $1,803.44, covering Sales Invoice No. 96 for audio equipment for $1,840.25 ($1,700.00 plus sales tax, $140.25), less 2% discount, $36.81. Receipt No. 89.

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1. Write the date.

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3. Record the receipt number.

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4. Write the accounts receivable credit amount.

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2. Write the customer name.

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6. Write the cash debit amount.

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JOURNALIZING A CASH RECEIPT JOURNALIZING A CASH RECEIPT WITH A SALES DISCOUNTWITH A SALES DISCOUNT page 45

CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 2-2

June 8. Received cash on account from Kim Electronics, $159.12, covering Sales Invoice No. 101 for $303.10 ($280.00 plus sales tax, $23.10), less Credit Memorandum No. 43 for $140.73 ($130.00 plus sales tax, $10.73), less 2% discount, $3.25. Receipt No. 92.

5. Write the sales discount debit amount.1. Write date.

3. Record receipt number.

4. Write the account receivable credit amount.2. Write the customer name.

6. Write the cash debit amount.

JOURNALIZING A CASH RECEIPT WITH A JOURNALIZING A CASH RECEIPT WITH A SALES RETURN AND A SALES DISCOUNTSALES RETURN AND A SALES DISCOUNT page 46

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CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 2-2

1. Date

3. Cash register tape number 4. Check mark in Post. Ref. column

2. Check mark in Account Title column

7. Cash debit amount

June 11. Recorded cash and credit card sales, audio equipment, $4,370.00; video equipment, $6,280.00; plus sales tax, $878.63; total $11,528.63. Terminal Summary No. 53.

5. Sales tax payable credit amount6. Sales credit amounts

JOURNALIZING CASH AND JOURNALIZING CASH AND CREDIT CARD SALESCREDIT CARD SALES page 47

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CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 2-2

2. Column totals are posted to the account named in the column heading.

1. Individual amounts are posted to the accounts receivable ledger.

POSTING FROM A CASH POSTING FROM A CASH RECEIPTS JOURNALRECEIPTS JOURNAL page 48

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CENTURY 21 ACCOUNTING © Thomson/South-Western

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LESSON 2-2

ORDER OF POSTING ORDER OF POSTING FROM JOURNALSFROM JOURNALS

Sales journal Purchases journal General journal Cash receipts journal Cash payments journal

Reason: to avoid negative balances!! MEMORIZE THIS!!!!

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