Question

Ali Co. uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the cash receipts journal.

Nov.
3 The company purchased $3,400 of merchandise on credit from Hart Co., terms n/20.
7 The company sold merchandise costing $897 to J. Than for $986 on credit, subject to a $20 sales discount if paid by the end of the month.
9 The company borrowed $2,600 cash by signing a note payable to the bank.
13 J. Ali, the owner, contributed $3,900 cash to the company.
18 The company sold merchandise costing $143 to B. Cox for $255 cash.
22 The company paid Hart Co. $3,400 cash for the merchandise purchased on November 3.
27 The company received $966 cash from J. Than in payment of the November 7 purchase.
30 The company paid salaries of $1,700 in cash.

Answer 1

Answer:

Ali Co.

Cash Receipts Journal:

Date     Description                    Amount

Nov. 9   Bank Notes Payable     $2,600

Nov. 13  Capital                           $3,900

Nov. 18  Sales                                 $255

Nov. 27 Accounts Receivable       $966

Total Cash Receipts                    $7,721

Explanation:

The Cash Receipts Journal is a special journal that is used to record only cash receipts for a period.  At the end of the period, the total is posted to the Cash Account in the general ledger as Cash Receipts.  The individual records are posted to the various individual accounts.