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In this video tutorial, we discuss the cash receipts journal, which manages all cash inflows for a business. The tutorial includes a visual example of the cash receipts journal. It walks through posting a transaction involving John Henry, a regular customer who pays $500 of his accounts receivable. The first step is to enter the date, followed by crediting the individual accounts receivable for John Henry. An explanation for the transaction is provided, noting the invoice being paid. John receives a 10% discount of $50, recorded in the sales discount column, while $450 is entered in the cash debit column. The full purchase amount is reflected in the accounts receivable credit column.
