AB-6SE
Question
Recording transactions in a cash receipts journal
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Jul. 5 Sold merchandise inventory for cash, \(1,700. Cost of goods, \)1,400.
12 Collected interest revenue of \(2,050.
18 Received cash from Heidi Next, \)1,200, on account. There was no
discount.
29 Received \(5,300 from Mitch Dylan in full settlement of his account receivable including sales discounts forfeited of \)20.
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Use the following cash receipts journal to record the preceding transactions.
| Cash Receipt Journal | ||||||||
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Date | Account Credited | Post. Ref. | Cash Dr | Accounts Receivables Cr | Sales Revenue Cr | Sales Discount Forfeited Cr | Other Accounts Cr | Cost of goods sold Dr Merchandise Inventory Cr |
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Step-by-Step Solution
VerifiedTotal Cash Collection: $10,250
The cash receipt journal is used to record any cash receipts. These cash receipts can be from sales, for recovery of receivables, or from any other sources. It is a special purpose journal that makes the transaction recording easy by recording all cash receipts transactions in one place because a business has lots of cash transactions.
| Cash Receipt Journal | ||||||||
|---|---|---|---|---|---|---|---|---|
Date | Account Credited | Post. Ref. | Cash Dr | Accounts Receivables Cr | Sales Revenue Cr | Sales Discount Forfeited Cr | Other Accounts Cr | Cost of goods sold Dr Merchandise Inventory Cr |
July 5 |
|
| $1,700 |
| $1,700 |
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| $1,400 |
12 | Interest revenue |
| $2,050 |
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| $2,050 |
|
18 | Heidi Next |
| $1,200 | $1,200 |
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29 | Mitch Dylan |
| $5,300 | $5,280 |
| $20 |
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