Recording Cash Sales
The following steps are used to enter cash sales in the cash receipts journal. The source document for this transaction is the cash register tape.
Step 1: Enter the date written on the cash register tape in the Date column.
Step 2: Enter the number of the tape in the Document Number column. Write the letter T (for tape) before the tape number.
Step 3: Enter the words Cash Sales in the Account Name column.
Step 4: Enter a dash in the Posting Reference column to indicate that no entries have been posted individually to the general ledger accounts.
Step 5: Enter the amount of merchandise sold in the Sales Credit column.
Step 6: Enter the amount of the sales taxes collected in the Sales Tax Payable Credit column.
Step 7: Enter the total cash received in the Cash in Bank Debit column.
The video given below indicates each step using the corresponding step number.