LESSON 10-2

1. LESSON 10-2 Journalizing Cash Receipts Using a Cash Receipts Journal

2. POS – Point of Sale Terminal • 5 main reports from a Terminal Summary: • Sales of each sales clerk – analyze efficiency • Sales by time of day – analyze scheduling for busy times • Report of merchandise – analyze inventory for reordering • Batch report – credit card sales • Batching out – the process of creating a batch report from a POS LESSON 10-2

3. Cash Register Receipt UPC (Universal Product Code) Point-of-Sale (POS) Terminal Receipt PROCESSING SALES TRANSACTIONS page 277 UPC is scanned for each product (#, description, price, & quantity on hand before the item can be sold. (continued on next slide) LESSON 10-2

4. Terminal Summary Batch Report PROCESSING SALES TRANSACTIONS page 277 (continued from previous slide) LESSON 10-2

5. CASH RECEIPTS JOURNAL page 278 Sales tax only Cash & credit card sales only (TS) Amount of cash received Customer’s name or Sales (check mark) Only used when customer pd. on account (R) Customer receives discount • * Used to record the receipt of cash from cash sales, credit card sales, cash received from customer’s “on account”. • Source Documents: TS = terminal sale R = receipt • *Cash Debit will ALWAYS be used • Can use a “check mark” to indicate cash and credit card sales. LESSON 10-2

6. CASH AND CREDIT CARD SALES page 279 November 4. Recorded cash and credit card sales, $5,460.00, plus sales tax, $327.60; total, $5,787.60. Terminal Summary 34. 2 4 1 3 5 6 7 1. Date 2. Sales or check mark for account title. 3. Terminal summary document number. 4. Place a check mark in the Post. Ref. column. 5. Sales credit amount. 6. Sales tax credit amount. 7. Cash debit amount (= sales + tax) LESSON 10-2

7. CASH RECEIPTS ON ACCOUNT page 280 November 6. Received cash on account from Country Crafters, $2,162.40, covering S69. Receipt No. 90. 1 2 3 4 5 Cash 2162.40 Accts. Rec. 2162.40 1. Date. 2. Customer’s name. 3. Receipt number 4. Credit amount customer paid towards acct. 5. Cash debit amount. LESSON 10-2

8. JOURNALIZING CASH RECEIPTS ON ACCOUNT WITH SALES DISCOUNTS page 282 November 7. Received cash on account from Cumberland Center, $1,176.00, covering Sales Invoice No. 74 for $1,200.00, less 2% discount, $24.00. Receipt No. 91. 1 2 3 4 5 6 1. Date. 4. The original invoice amount in AR credit. 2. Customer’s name. 5. The amount of sales discount. 3. Receipt number. 6. Cash debit; subtract discount from AR credit LESSON 10-2

9. TOTALING, PROVING, AND RULING A CASH RECEIPTS JOURNAL page 283 How would you prove debits & credits = ? Credits =Debits = 9540.00 52.50 + 27532.50 + 38668.80 + 1648.80 38721.30 38721.30 LESSON 10-2

10. PROVE CASH • Cash must be proved at the end of each month. Cash on hand @ beg. of month + Total cash received during the month(CR debit column total) = Total • Total cash paid during the month (CP credit column total) = Cash balance on hand at the end of the month MUST = Checkbook balance on the next unused ck. stub LESSON 10-2

11. TERMS REVIEW page 284 • cash sale • credit card sale • point-of-sale (POS) terminal • terminal summary • batch report • batching out • cash receipts journal • sales discount LESSON 10-2