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In this video, we discuss the cash receipts journal, which tracks all cash inflows for a business. The cash receipts journal includes various components, starting with the date of the transaction. Using the example of a regular customer, John Henry, who paid $500 towards his account, we outline the posting process. First, the accounts receivable for John is credited, with a note explaining the payment and the invoice number if available. John receives a 10% discount, amounting to $50, which is recorded in the sales discount column. Consequently, $450 is noted in the cash debit column, while the total purchase amount of $500 is reflected in the accounts receivable credit column.