University of Phoenix
Week four checkpoint
Besides the general journal, there are four different special journals; the Sales Journal, the Cash Receipts Journal, the Purchases Journal, and the Cash Journal. The Sales Journal records all sales of merchandise on account, cash and credit sales not included. The advantage of the sales journal is that it is time saving and easy because not every transaction has to be singled out, total can be reported instead. From the Sales Journal the entries can easily be posted into the general ledger. The Cash Receipt Journal records all cash received in accounts receivables and sales. It is usually made out of numerous columns and very detailed in where the money came from. The Purchases journal is very similar to the sales journal but instead of accounts receivable it records accounts payable. The advantages of this journal are that all purchase expenses can be seen on one list and very easily entered into the general ledger. The subsidiary ledger is made out of many different accounts and makes the general ledger easier to read because the descriptions do not have to be written out all the way for the general ledger. A control account is a dual account with the same amounts posted than the general journal; it is done to guarantee the accuracy of the general journal and its balances. The two most commonly used accounts to control the amounts are the accounts payable subsidiary ledger and the general ledger.
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