In a cash receipts journal, sales and sales returns and allowances are recorded by department.

Frequent postings are made from the customers’ accounts to the general journal in order to keep the customers’ accounts up to date.

The form prepared by the vendor showing the amount deducted for returns and allowances is known as a credit memorandum.

Each amount recorded in the Accounts Receivable Credit column of the cash receipts journal is posted to the appropriate customer account in the accounts receivable ledger.

To have complete departmental data, purchases, sales, cash receipts, and cash payments must be analyzed by department.

The sales journal has three credit columns: (1) Sales Discount, (2) Sales, and (3) Sales Tax Payable.

When amounts are posted from the sales journal to the customers’ accounts, the customer number is recorded in the Post. Ref. column of the sales journal.

In states that have a sales tax, businesses include a Sales Tax Payable Credit column in the sales journal.

The Realization of Revenue accounting concept explains why businesses record departmental sales at the time of sale, regardless of when payment is made.

By recording sales returns and allowances separately, a business can easily determine the proportion of merchandise sold that was returned by customers.

The total amount shown on a sales invoice includes the price of the merchandise plus the sales tax.

The terminal summary is the source document for both cash sales and credit card sales.

All departmental sales are recorded in a sales journal.

A sales return results in a credit to the customer’s account and the general ledger account, Accounts Receivable.

The terms n/30 require the customer to pay the full amount of the invoice within 30 days of the invoice date.

The column totals of the sales journal are posted to the general ledger only when the journal is filled.

Posting a sales return from the general journal results in a credit being posted to the Accounts Receivable account and the customer’s account.

The amount of cash received when a $100.00 sale, plus sales tax of 5%, is collected within the 2/10, n/30 discount period is $98.00.

The cash receipts journal should be proved before posting the column totals to the general ledger.

When journalizing a sales return transaction in the general journal, the accounts debited are

When journalizing a sales return transaction in the general journal, the general ledger account(s) credited is (are)