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In this video tutorial, we discuss the cash receipts journal, which tracks all cash inflows for a business. The cash receipts journal is introduced, showing its layout. We demonstrate transaction posting with an example involving a customer, John Henry, who pays $500 toward his accounts receivable. The process begins with entering the date, followed by crediting the appropriate accounts. We record the invoice number if available, and since John receives a 10% discount, $50 is noted in the sales discount column. The cash debit column reflects $450, while the accounts receivable credit column records the total purchase amount of $500.
