24-25 Accounting Sales Journal Intro

4.02 Sales Journal

Review:
Sales -+ Revenue
Sales Tax Payable +- Contra-Sales
Sales Discount +- Contra Sales
Selling on account - Accounts Receivable +- Asset

Companies that have mostly sales in high column like retail, manufacturing and banking use special journals. They help keep general ledgers less lengthy and make audits simpler.

Why Special Journals

We will learn to use 4 special journals this semester:

Sales Journal

Special Journals

1. Sales Journal

2. Purchases Journal

3. Cash Receipts Journal

4. Cash Disbursements Journal

Parts of Sales Journal

Examine the Sales Journal.
1. You record the Date Month/year only once; the day every time
2. Record the Account (receivable) to be debited (which customer)
3. Record the S Sales Invoice Number. (source document)
4. Record Amount they owe (price plus any tax)
5. Record the Amount of the actual Sales (does not contain tax)
6. Record any tax required.

(Note: not all transactions will collect sales if you sale to a tax-exempt entity you do not collect sales tax)

​Sales Journals are for CREDIT SALES ONLY!!!

Post SJ to General Ledger all at once!

1. Post Date (use full numeric date for each post)

2. Debit Account Amount

3. Source Document S##

4. Credit Account(s) Amount(s)

​Posting Sales Journal End of Month

Multiple Choice

February 14, sold merchandise on account to Kaylee Krafting, $450.00 plush sales tax $27.0 for a total of $477.00; Sales Invoice No. 15

What transaction records this entry?

• Debit Accounts Receivable, $450, Debit Sales Tax Payable $27; Credit Sales $477

• Debit Accounts Payable - Kaylee Crafting $477; Credit Sales, $450 Credit Sales Tax Payable $27

• Debit Accounts Receivable - Kaylee Crafting $477; Credit Sales, $450 Credit Sales Tax Payable $27

• Debit Sales $450, Debit Sales Tax Payable $27; Credit Accounts Receivable $477

Match

Match the terms and calculations.

• Contra Sales

• Calculation of Net Sales

• Calculation of Net income

• Calculation of Net Income Component

• Liability

Sales Discounts

Sales - Sales discounts - Sales R&A

Income Statement Credit - Debit Balances

Net Income/Sales

Sales Tax Payable

• Sales Discounts

• Sales - Sales discounts - Sales R&A

• Income Statement Credit - Debit Balances

• Net Income/Sales

• Sales Tax Payable

Multiple Choice

A customer has a $750 invoice with terms "4/15, net 45" and pays within 15 days. What amount is due?

• $750

• $740

• $720

• $710

Multiple Choice

What does "2/10, net 30" mean?

• 2% discount if paid within 10 days; otherwise, the full amount is due in 30 days.

• A 2% discount if paid within 30 days; otherwise, full payment due within 10 days.

• Payment is due in 2 days with a 10% discount.

• Full amount due in 30 days, no discount available.

Multiple Choice

A sale of $1,200 is made on credit, with a 6% sales tax included. The customer pays within a 2% discount period. What is the correct entry when payment is received?

• Debit Cash $1,176

  Debit Sales Discounts $24

  Credit Accounts Receivable $1,200

• Debit Cash $1,200

  Credit Sales Discounts $24

  Credit Accounts Receivable $1,176

• Debit Cash $1,000

  Credit Accounts Receivable $1,000

• Debit Sales Discounts $24

  Credit Cash $24

Multiple Choice

A business collects $1,000 in cash sales plus 7% sales tax. What is the correct journal entry?

• Debit Cash $1,000

  Credit Sales Tax Payable $1,000

• Debit Sales Revenue $1,000

  Credit Sales Tax Payable $1,000

• Debit Cash $1,000

  Credit Sales Revenue $1,070

• Debit Cash $1,070

  Credit Sales Revenue $1,000

  Credit Sales Tax Payable $70

Multiple Choice

A company issues a 5% sales discount on an $800 sale if paid within the discount period. Which is the correct entry to record the cash received after the discount?

• Debit Sales Discounts $40

  Credit Accounts Receivable $40

• Debit Cash $800

  Credit Sales Discounts $40

  Credit Accounts Receivable $800

• Debit Cash $760

  Debit Sales Discounts $40

  Credit Accounts Receivable $800

• Debit Accounts Receivable $760

  Credit Cash $760

Multiple Choice

A customer buys items for $800 on account, with a 6% sales tax. What is the correct journal entry?

• Debit Accounts Receivable $848

  Credit Sales Revenue $800

  Credit Sales Tax Payable $48

• Debit Cash $848

  Credit Sales Revenue $800

  Credit Sales Tax Payable $48

• Debit Accounts Receivable $800

  Credit Sales Revenue $800

• Debit Cash $848

  Credit Sales Revenue $848

Match

Match the transaction to the entry.

• Debit Cash; Credit Sales Tax Payable

• Debit Sales Returns and Allowances, Debit Sales Tax Payable, Credit Accounts Receivable

• Debit Accounts Receivable, Credit Sales Revenue, Credit Sales Tax Payable

• Debit Cash, Debit Sales Discounts, Credit Accounts Receivable

Collection of sales tax from customer

Customer returns merchandise with sales

Sale of goods with sales tax applied

Payment received within discount period

• Collection of sales tax from customer

• Customer returns merchandise with sales

• Sale of goods with sales tax applied

• Payment received within discount period

Match

Match terms to customer responsibility.

• Customer owes $490

• Full $800 is due

• Customer owes $1,000

• Customer owes $1,940

Invoice of $500 terms 2/10, n/30

Invoice of $800 terms n/30

Invoice of $1,000 terms n/45

Invoice of $2,000 terms

3/10, net 30

• Invoice of $500 terms 2/10, n/30

• Invoice of $800 terms n/30

• Invoice of $1,000 terms n/45

• Invoice of $2,000 terms

  3/10, net 30