Cash Receipts Journal - Cash Receipts Journal All receipts...

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Cash Receipts Journal All receipts of cash are recorded in the cash receipts journal . The most common types of cash receipts are cash sales of merchandise and collections of accounts receivable. Many other possibilities exist, such as receipt of money from bank loans and cash proceeds from disposal of equipment. A one- or twocolumn cash receipts journal would not have space enough for all possible cash receipt transactions. Therefore, a multiple-column cash receipts journal is used. Generally, a cash receipts journal includes the following columns: debit columns for cash and sales discounts; and credit columns for accounts receivable, sales, and “other” accounts. The Other Accounts category is used when the cash receipt does not involve a cash sale or a collection of accounts receivable. Under a perpetual inventory system, each sales entry is accompanied by another entry that debits Cost of Goods Sold and credits Merchandise Inventory for the cost of the merchandise sold. JOURNALIZING CASH RECEIPTS
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This note was uploaded on 11/08/2011 for the course ACCOUNTING ac 201 taught by Professor - during the Spring '11 term at Montgomery.

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Cash Receipts Journal - Cash Receipts Journal All receipts...

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