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 $2,550 cash by signing a note payable to the bank.
		13		J. Ali, the owner, contributed $3,850 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.

	CASH RECEIPTS JOURNAL Date Account Credited Cash Dr. Sales Discount Dr. Accounts Receivable. Cr. Sales Cr. Other Accounts Cr. Cost of Goods Sold Dr. Inventory Cr.

Answer 1

Cash Receipt Journal

Date	Account credited	Cash- Dr.	Sales Discount Dr.	Account Receivable Cr.	Sales Cr.	Other Account Cr.	COGS Dr. Inventory Cr.
Nov. 9	Note Pa	2,550				Note Payable
Nov.13	A's Cap	3,850				J Ali's Capital
Nov.18	Sales	255			255		143
Nov.27	J. Than	966	20	986
Nov.30	Total	7,621	20	986	255		143

Other transactions on Nov.3, Nov.7, Nov.22 and Nov.30 are not recorded in cash receipt journal.