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In this tutorial, we discuss the cash receipts journal, which tracks all cash inflows to a business. The video illustrates how to post transactions in the journal. For example, when John Henry, a regular customer, pays $500 on his account, the first step is to record the date. Next, we credit John’s individual accounts receivable account and note the invoice he is paying off, if available. Since he receives a 10% discount, $50 is recorded in the sales discount column, while $450 is entered in the cash debit column. The full $500 is credited to the accounts receivable column, completing the transaction entry in the cash receipts journal.
