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Record Keeping Chapter 9 Record Keeping for Accounts Receivable Clerks

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Title: Record Keeping Chapter 9 Record Keeping for Accounts Receivable Clerks


1
Record Keeping Chapter 9Record Keeping for
Accounts Receivable Clerks
  • Jobs 43-48

Chapter 9
2
  • Record Keeping for Accounts Receivable
    ClerksGrades for Chapter 9
  • Class work is 40 of overall grade
  • Job 43 Class work 10 Points
  • Job 44 Class work 10 Points
  • Job 45 Class work 10 Points
  • Job 46 Class work 10 Points
  • Job 47 Class work 10 Points
  • Job 48 Class work 10 Points
  • Chapter 9 Reinforcement Problem 25 Points
  • Quizzes and Tests are 40 of overall grade
  • Chapter 9 Open Notes Quiz 25 Points
  • Chapter 9 Test 100 Points
  • 40Questions Scantron
  • 3Problems

Chapter 9
  • Jobs 43-48

3
Record Keeping for Accounts Receivable Clerks
  • Wholesalers are business that sell in large
    quantities to retailers.
  • Orders may be taken by mail, phone, fax, online
    or by a salesperson.
  • Original record of sale is recorded on a form
    call the Sales Order.
  • Most sales for wholesalers are credit sales.
    Retailers buy now and pay later for them.
  • Accounts Receivable Clerks must keep track of
    these of records.

4
What will we be learning in this chapter?
  • Who are Wholesalers , Retailers and Consumers?
  • Last chapter we covered sales from retailers to
    consumers. This chapter we will cover sales from
    wholesalers to retailers.
  • How to keep A/R records for a wholesale business
    and how prepare a schedule of A/R.
  • How to use and post a Sales Journal.
  • How to use and post a Cash Receipts Journal.
  • How to use and post a Sales Returns and
    Allowances Journal.

5
Job 9-43Preparing Sales Invoices
  • Wholesalers
  • Firm that sell merchandise to retailers for
    resale
  • Wholesales buy from producers, sell to retailers.
  • Retailers sell merchandise directly to the
    consumer

6
  • Sales Order
  • Form on which sale of merchandise is first
    recorded
  • Sales Invoice
  • Bill
  • 7 types of information on a sales invoice
    (covered in sample problempage 343-344)
  • Terms-Length of time a customer has to pay
  • 30 days is standard
  • Due Date-Date invoice should be paid
  • You must calculate this date

7
Calculating Due Dates
  • It is not always easy to find the due date.
  • Customer has 30 days to pay.
  • Not all bills are sent out on the first of the
    month.
  • Not all months have 30 DaysKnuckle method?
  • Step 1Take the number of days in the month and
    subtract the date of the invoice.
  • Invoice date October 11.
  • 31 11 20 days in October
  • Step 2Calculate days left over.
  • Add 10 days to get to the 30 day term.
  • 20 days in October 10 days in November 30
    days total.
  • Due date is November 10th.

8
Job 43Exercises
  • Sample Problem
  • Vocabulary
  • Problems 43-1, 2

9
Job 9-44Keeping Records of Customer Accounts
  • Separate accounts are kept for each customer.
    The accounts are kept in a separate book call the
    A/R Ledger.
  • Account
  • Individual record of a customers purchases,
    returns and payments
  • Accounts Receivable Ledger
  • A group of customer accounts
  • Schedule of Accounts Receivable
  • List of customers who owe us money

10
Review of Accounts Receivable Accounts
  • 3 Column Account Form. What are the 3 columns?
  • Debit
  • Credit
  • Balance (running balance)
  • Sales on Account are a DR or CR to A/R?
  • DR Debit
  • Payments on Account are a DR or CR to A/R?
  • CR Credit
  • Sales Returns are a DR or CR to A/R?
  • CR Credit

11
Job 44 Exercises
  • Sample Problems
  • Vocabulary
  • Problems 44-1, 2, 3

12
Job 9-45Using Sales Journals
  • Sales Journal
  • Record of charge sales
  • All sales on account are recorded here!
  • The process of recording data in a journal is
    called journalizing.
  • Accounts Receivable Ledger
  • Stores all A/R accounts
  • Posting
  • Transferring data from one record to another.
  • Transferring data from the Sales Journal to the
    A/R Ledger.
  • Posting must follow chronological order.

13
Six Steps of PostingTransferring from the sales
journal to the A/R Ledger
  • Copy the date
  • Copy the Sales Invoice Number
  • Copy the Journal and Page Number
  • Copy the amount
  • Calculate new balance
  • Copy account number
  • Simply go from the left to the right for steps
    1-5.
  • Step 6 is showing that you completed steps 1-5.

14
Steps To Follow When Using a Sales Journal!
  • Journalize the sales on account in the Sales
    Journal.
  • Post from the Sales Journal to the each of the
    customers accounts.
  • Total the Sales Journal.
  • Add the sales and foot the amount column.
  • Re-add the column to confirm the total and then
    write it in.
  • Write in the word Total in the customers Name
    column and double rule the total.
  • Double rule shows that you confirmed the total.

15
Job 45 Exercises
  • Sample Problem
  • Vocabulary
  • Problems 45-1, 2, 3, 4, 5

16
Job 46Using a Cash Receipts Journal
  • In Job 45, we sold merchandise on account to our
    customers.
  • The Sales Journal was used to record the sales on
    account transactions.
  • On or before the due date of the sales invoice,
    our customers must pay us.
  • In Job 46, we will use the Cash Receipts Journal
    to show the receipts of cash from the customers
    we have billed.

17
Job 46Using a Cash Receipts Journal
  • Cash Receipts Journal
  • Records all receipts of cash
  • When customers pay us on account, it will be
    recorded in the Cash Receipts Journal.
  • Steps To Follow
  • Record cash receipt in the Cash Receipts Journal
  • Post to the customers account
  • Total the Cash Receipts Journal
  • Check account balances in the A/R Ledger
  • Foot DR and CR columns.
  • Subtract.
  • Should equal account balance.

18
Job 46 Exercises
  • Sample Problem
  • Vocabulary
  • Problems 46-1, 2, 3, 4

19
Job 9-47Using Sales and Cash Receipts Journals
  • In this job, we will use all 3 records to record
    transactions with customers who buy merchandise
    on account.
  • Sales Journal. What do we journalize in the
    Sales Journal?
  • Cash Receipts Journal. What do we journalize in
    the Cash Receipts Journal.
  • Accounts Receivable Ledger.
  • What does a DR represent?
  • Which Journal did it come from?
  • What does a CR represent?
  • Which Journal did it come from?

20
Job 9-47Using Sales and Cash Receipts Journals
Sales Invoices
Cash Receipts
Sales Journal
Cash Receipts Journal
Posted as a DR to Customers Account
Posted as a CR to Customers Account
Accounts Receivable Ledger
21
Job 47 Exercises
  • Sample Problem
  • Vocabulary
  • Problems 47-1, 2, 3

22
Job 9-48 Using a Sales Returns and Allowances
Journal
  • Customers occasionally may return merchandise to
    us. It may be damaged or we may have shipped
    them the wrong merchandise.
  • Customers occasionally may choose to keep damaged
    or incorrectly shipped merchandise and take a
    reduction in its price.
  • Sales Returns
  • Merchandise Returned to us by a customer.
  • Use a credit memo to record the return of
    merchandise.
  • We used Credit Memos in Chapter 8.

23
Using a Sales Returns and Allowances
JournalContd
  • Sales Allowance
  • Reducing the price of damaged goods or
    incorrectly shipped merchandise.
  • Use a credit memo.
  • This allows the customer to keep the current
    goods and avoid the hassle of handling damaged
    merchandise, shipping, etc.
  • An allowance may be given if a customer was
    overcharged.
  • An allowance may also allow the customer to keep
    the incorrect merchandise shipped to them wrong
    color, model, etc.
  • Overcharge
  • Price of an item on the invoice is to high.

24
Using a Sales Returns and Allowances
JournalContd
  • Sales Returns and Allowances Journal
  • Used to journalize (record) all Credit Memos.
  • Steps to follow
  • Journalize Credit Memo in Sales Returns and
    Allowances Journal.
  • Post to the customers account
  • Posted as a CR to the customers account.
  • This reduces the amount they owe us.
  • Total the Sales Returns and Allowances Journal.
  • Add the Amount Column and foot the amount.
  • Re-add the column to confirm the total and then
    write it in.
  • Write in the word Total in the customers Name
    column and double rule the total.
  • Double rule shows that you confirmed the total.

25
Accounting Records and Source Documents to keep
track of when customers purchase merchandise on
account from us.
  • Sales Journal
  • Sales Invoices
  • Cash Receipts Journal
  • Check/Cash
  • Sales Returns and Allowances Journal
  • Credit Memos
  • Accounts Receivable Ledger
  • DRs are posted from the SJ
  • CRs are posted from the CRJ
  • CRs are posted from the SRAJ
  • Post in Journal and date order!

26
Job 48 Exercises
  • Sample Problem
  • Vocabulary
  • Problems 48 1, 2, 3, 4, 5, 6
  • --------------------------------
  • Chapter 9 Quiz
  • Reinforcement Problem
  • Chapter 9 Test
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