Cash receipts journal refers to a special journal that records all cash received. The most common types of cash receipts are cash sales of merchandise and collections of accounts receivable. Many other possibilities exist, such as receipt of money from bank loans and cash proceeds from disposal of equipment. A one-or two-column cash receipts journal would not have space enough for all possible cash receipt transactions. Therefore, companies use a multiple-column cash receipts journal.
More from this Section
In the percentage-of-sales basis, management estimates what percentage of credit sales will be uncollectible. This percentage is based on...
- Forensic accounting
Forensic accounting is an area of accounting that uses accounting, auditing, and investigative skills to conduct investigations into theft and fraud.
- Manufacturing overhead budget
Manufacturing overhead budget is an estimate of expected manufacturing overhead costs for the budget period.
- Cost-volume Profit (CVP) graph
Cost-volume Profit (CVP) graph refers to a graph that shows the relationship between costs, volume, and profits.
- Reversing entry
Reversing entry is an entry, made at the beginning of the next accounting period that is the exact opposite of the adjusting entry made in the previous period.
- Term and serial bonds
Bonds that mature-are due for payment-at a single specified future date are term bonds. In contrast, bonds that mature in installments are serial bonds.
- Debt to total assets ratio
Debt to total assets ratio is a solvency measure that indicates the percentage of total assets provided by creditors: computed as total debt divided by total assets.