Lesson 6: The Sales Journal

Objectives:

Once we have taken up last day's quiz, we will then explore Topic #1 of Chapter 13 - journalizing and posting credit sales transactions.

The primary focus of this topic is the Sales Journal (page 515) and the expanded Sales Journal (page 522) which we use to record credit sales along with their associated entries to the GST payable account.

A secondary focus for this particular class will be to analyze how GST is actually collected and remitted by businesses. Students will come to appreciate how the entire Goods and Services Tax is only paid by the final consumer of a product - even though it might appear that businesses also pay GST on their purchases.

In addition, we will analyze how an entry to the Sales Return and Allowance account would be recorded within the General Journal.

The Sales Journal is used only for credit sales. Cash sales, as well as payments received on the accounts outlined above, are recorded within the Cash Receipts Journal.

At the end of the month, the amounts still owed to us by our customers are noted within a Schedule of Accounts Receivable.

Method of Instruction and Evaluation:

The assigned problem for the class will be Problem 13-3 on page 530.

References:

• Text: Please read this topic (pages 508 - 528) in preparation for the class.
• Web: Please refer to the online handout entitled G.S.T. - The "Big Salad"