Sales Journal - Sales Journal The sales journal is used to...

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Sales Journal The sales journal is used to record sales of merchandise on account. Cash sales of merchandise are entered in the cash receipts journal. Credit sales of assets other than merchandise are entered in the general journal. JOURNALIZING CREDIT SALES Karns Wholesale Supply uses a perpetual inventory system. Under this system, each entry in the sales journal results in one entry at selling price —a debit to Accounts Receivable (a control account) and a credit of equal amount to Sales— and another entry at cost. The entry at cost is a debit to Cost of Goods Sold and a credit of equal amount to Merchandise Inventory (a control account). The sales journal for Karns Wholesale Supply is shown in Illustration G-5. (It uses assumed credit sales transactions for sales invoices 101–107.) A sales journal with two amount columns, like that in Illustration G-5, shows a transaction at both selling price and cost on a single line. The reference (Ref.) column is not used in journalizing. It is used in posting the sales journal, as explained in the next
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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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