6.01 Assignment - Accounting for Sales and Cash Receipts.docx - Santiago 1 Shianne Santiago Keystone Accounting Teachers Accounting Accounting for Sales

6.01 Assignment - Accounting for Sales and Cash Receipts.docx

This preview shows page 1 - 2 out of 4 pages.

Santiago 1 Shianne Santiago Keystone Accounting Teachers Accounting May 19, 2020 Accounting for Sales and Cash Receipts Part 1 (9 points): Answer the following questions: 1. What is a cash receipt? How do businesses record the receipt of cash? 2. Explain how a purchase made with a store credit card is different from a purchase made with a bank credit card. 3. How are a bank credit card and a bank debit card similar? How are they different? 1. A cash receipt is a type of document that is given after a transaction where a full cash payment is received from the customer. Business record the receipt of cash typically through the use of cash registers, as it records the details the of the cash sale on two rolls of paper tape inside of itself. One of the pieces of paper tape is given to the customer as a receipt, while the other is kept by the business in the register as a record of the cash transaction. 2. A purchase made with a store credit card differs from a purchase made with a bank credit card because a purchase made with a store credit card is considered a sale made on account, whilst a purchase made with a bank credit card is not. A purchase made with a bank credit card is not considered a transaction made on account: the amount paid is credited to the business’s checking account either the same day or next business day. The amount owed is not paid a later day, unlike with a purchase made with a store credit card. 3. A bank credit card is similar to a bank debit card in the fact that they are both opened by a customer with a bank, represent currency and are in the forms of cards that have designated sixteen digit card numbers, pin codes and expiration dates. They allow for customers to draw
Image of page 1
Image of page 2

You've reached the end of your free preview.

Want to read all 4 pages?

  • Fall '09
  • Payment, Credit card, Cheque, Double-entry bookkeeping system

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes