However they still need to have procedures and

Today, companies increasingly sell products with little expense and effort over the Internet.
However, they still need to have procedures and systems for processing online sales
transactions. Companies may use an Internet merchant account for credit and debit card
payments or an online payment service such as PayPal. Most Internet sales systems make batch
transactions daily to provide updated sales and inventory entries for the company’s computer
systems.

Security is an important requirement of online sales transactions. Businesses use a card
verification service to authenticate credit card security codes and personal identification data to
protect themselves from online fraud.
Key Terms
The key terms used in the unit are listed below:

Cash Receipts Journal: A cash receipts journal is used to record all cash receipt
transactions.

Schedule: Accountants prepare a schedule for each subsidiary ledger to determine
whether the subsidiary ledger’s sum equals the controlling account’s ending balance.

Internet Sales: Internet sales are a recent method of selling products with little expense
and effort over the Internet. Despite the reduced cost of internet sales for the merchant
(e.g., since a physical store is not required), special measures are required to ensure
security and guard against fraud.

Special Journal: Purchases and Cash Payments: Introduction
People make payments for transactions such as car insurance, or to pay installments for an item
purchased on credit. Businesses also adopt similar modes of payment. Businesses buy most items
on credit and keep a track of the due date for payment.
In this section, you will learn how to handle purchases and cash payments journals, and the steps
involved in recording the purchase of merchandise and other assets.
The final part of this section defines the key terms used. Short questions, fill in the blanks, and
multiple choice are given to test your reading and understanding.
Special Journal: Purchases and Cash Payments - Key Concepts
The key terms in this section are:

Purchase Journal

Cash Payment Journal

Bankcard Fee

Proving Cash
Special Journal: Purchases and Cash Payments - Objectives
After you have completed this section, you will be able to:
1. Explain the purpose of the Purchases and Cash Payments Journal.
2. Record transactions in the Purchases and Cash Payments Journal.
3. Record payroll transactions in the Cash Payments Journal.
4. Post transactions from the Purchases and Cash Payments Journal to the General Ledger
and the Accounts Payable Subsidiary Ledger.
5. Explain how to total, prove, and rule the Purchases and Cash Payment Journals.
6. Prepare a schedule of Accounts Payable.

7. Explain how to prove cash.
8. Define the accounting terms introduced in this chapter.
Purchase Journals
A Purchase Journal contains details only of the Purchases On Account. Accountants use this
journal as a special journal to record all Purchases On Account.
Using the Purchases Journal
The Purchases Journal is used to perform the following tasks:
1. Recording the purchase of merchandise on account
2. Journalizing the General Debit column (other purchases account)
3. Posting entries from the Purchases Journal
4. Posting from the General Debit column
5.