Chapter 7 Book Notes

Chapter 7 Book Notes - 2.) Accounts payable ledger- When...

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Chapter 7 Book Notes We use Special Journals to enhance internal controls and reduce the cost of having transactions . These four accounts are separate, since they all have different duties. 1.)Sales Journal- records Credit Sales 2.)Cash Receipts Journal- records cash receipts 3.)Purchases journal- records credit purchases 4.)Cash Disbursement Journal- cash payments/payouts General Journal – transactions not in special journals What is a Subsidiary Ledger? It is a list of individual accounts with a common characteristic. A subsidiary ledger contains specific information on specific accounts in the ledger… 3 important ledgers 1.) Accounts Rec.ledger (controlling account) Keeps separate accounts for each customer who pays in credit.
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Unformatted text preview: 2.) Accounts payable ledger- When the company buys on credit from different suppliers, a subsidiary ledger lists all suppliers and gives them a separate account. 3.) Other Subsidiary Ledgers- Equipment accounts, investments, inventory, (any needing separate detailed records) pg 272 Sales Journal-Used to record sales on inventory on credit. (Sales of non inventory assets on credit are recorded in the general journal) Journalizing- Columnar Journal has more than one column. Its will have columns for recording the date, customers name, invoice number, posting reference, and the retail anc cost amounts,...
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