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
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

Step by step solution

01

Cash Receipt Journal

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.

02

Posting to Cash Receipt Journal

					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			$1,400
12	Interest revenue		$2,050				$2,050
18	Heidi Next		$1,200	$1,200
29	Mitch Dylan		$5,300	$5,280		$20

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