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How to Summarize the Cash Receipts Journal

You can summarize the Cash Receipts journal for your business once you’re sure that all cash receipts — as well as any corrections or adjustments to those receipts — have been properly entered in the accounting books.

After summarizing the Cash Receipts journal for the accounting period you’re analyzing, you know the total cash that was taken into the business from sales as well as from other channels.

In the Cash Receipts journal, sales usually appear in two columns:

  • Sales: The cash shown in the Sales column is cash received when the customer purchases the goods using cash, check, or bank credit card.

  • Accounts Receivable: The Accounts Receivable column is for sales in which no cash was received when the customer purchased the item. Instead, the customer bought on credit and intends to pay cash at a later date.

In addition to the Sales and Accounts Receivable columns, your Cash Receipts journal should have at least two other columns:

  • General: The General column lists all other cash received, such as owner investments in the business.

  • Cash: The Cash column contains the total of all cash received by the business during an accounting period.

After you add all receipts to the Cash Receipts journal, entries for items bought on store credit can be posted to the Accounts Receivable journal and the individual customer accounts. You then send bills to customers that reflect all transactions from the month just closed as well as any payments still due from previous months. Billing customers is a key part of the monthly closing process.

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