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In this video tutorial, the cash receipts journal is introduced, which tracks all cash inflows to a business. An example is provided featuring a regular customer, John Henry, who pays $500 of his accounts receivable. The process begins with recording the date and crediting the individual accounts receivable account for John Henry. An explanation of the payment is included, along with the invoice number if available. John receives a 10% discount, amounting to $50, which is recorded in the sales discount column. Consequently, $450 is entered in the cash debit column, while the full $500 is credited in the accounts receivable column.
