Journalizing Sales and Cash Receipts Using Special Journals
Terms in this set (...)
a report of credit card sales produced by a point-of-sale terminal
the process of preparing a batch report of credit card sales from a point-of-sale terminal
cash receipts journal
a special journal used to record only cash receipt transactions
a sale in which cash is received for the total amount of the sale at the time of the transaction
credit card sale
a sale in which a credit card is used for the total amount of the sale at the time of the transaction
a form prepared by the vendor showing the amount deducted for returns and allowances
a person or business to whom merchandise or services are sold
point-of-sale (POS) terminal
a computer used to collect, store, and report all the information of a sales transaction
credit allowed a customer for part of the sales price of merchandise that is not returned, resulting in a decrease in the vendor's accounts receivable
a cash discount on sales taken by a customer
a special journal used to record only sales of merchandise on account
credit allowed a customer for the sales price of returned merchandise, resulting in a decrease in the vendor's accounts receivable
a tax on a sale of merchandise or services
the report that summarizes the cash and credit card sales of a point-of-sale terminal
How does a merchandising business differ from a service business?
A merchandising business sells merchandise A service business sells services
How are sales tax rates usually stated?
As a percentage of sales
Why is sales tax collected considered a liability?
The amount of sales tax collected is a business liability until paid to the government.
What is the title of the general ledger account used to summarize the total amount due from all charge customers?
What is the difference in the receipt received by a customer from a cash register versus a point-of-sale terminal?
The POS system produces a receipt that contains detailed information about the sale, including the merchandise's description and price. The cash register receipt does not include such detailed information.
What are the two types of batch reports?
A batch report can be detailed, showing each credit sale Or it can provide a summary of the number and total of sales by credit card type.
Who transfers funds between banks involved in the credit card sales?
The funds are transferred among the banks issuing the credit cards.
What is the difference between a sales return and a sales allowance?
A sales return is credit allowed a customer for the sales price of returned merchandise; A sales allowance is credit allowed a customer for part of the sales price of merchandise that is not returned.
What is the source document for journalizing sales returns and allowances?
What general ledger accounts are affected, and how, by a sales returns and allowances transaction?
Sales Returns and Allowances and Sales Tax Payable = Debit Accounts Receivable = Credit
Why are sales returns and allowances not debited to the Sales account?
To provide better information to quickly identify if the amount of sales returns and allowances is greater than expected.
Accounting Chp 10:1-3 Terms Review & Audit Your Understanding25 terms