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In this tutorial, we discuss the cash receipts journal, which manages all cash inflows for a business. The video shows an example involving a customer, John Henry, who pays $500 of his accounts receivable. The procedure begins with entering the date, followed by crediting the individual accounts receivable account for John. An explanation note includes the relevant invoice number if known. Afterward, amounts are posted: a 10% discount of $50 is recorded in the sales discount column, while $450 is entered in the cash debit column. The full payment amount is credited in the accounts receivable column.
