SALES JOURNAL Used only to record credit sales of merchandise. ACOUNTS RECEIVABLE LEDGER Businesses have many customers and the individual businesses are not assigned an account number they are just in alphabetical order Accounts Receivable is the controlling account Debit is normal balance Posting – Accounts Receivable ledger – totals and individual accounts SALES JOURNAL only records the sale of merchandise on account. Post totals monthly and individual accounts on a daily basis SALES RETURNS AND ALLOWANCES Allowance results when a buyer decides to keep damaged or defective goods, but at a reduction from the original price. Return results when a buyer returns part, or all of the order Recording Sales Returns and Allowances A Credit Memorandum is the original document SALES DISCOUNTS Sales discount is recorded as a reduction in sales revenue. Recorded as a debit. “Contra Revenue Account” CASH RECEIPTS JOURNAL
Source documents: cash register tapes, sales tickets, checks received. POSTING THE CASH RECEIPTS JOURNAL Individually to each account and totals to controlling accounts monthly SCHEDULE OF ACCOUNTS RECEIVABLE – Accounts Receivable and individual accounts must match. The only accounts that will be listed are those accounts with a balance.
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