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In this video tutorial, the cash receipts journal is explained as a tool for managing all cash inflows to a business. An illustration of how to record transactions in the journal is provided. For example, when John Henry, a regular customer, pays $500 of his accounts receivable, the process begins by entering the date and crediting the individual accounts receivable for John. An explanation and invoice number may also be included. After posting the transaction, a 10% discount of $50 is recorded in the sales discount column, with $450 in the cash debit column and the full purchase amount listed in the accounts receivable credit column.
