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In this video tutorial, the focus is on the cash receipts journal, which tracks all incoming cash for a business. The presentation includes the format of the journal and examples of posting transactions. When a customer, John Henry, pays $500 of his accounts receivable, the process starts with recording the date and crediting the individual accounts receivable for him. An explanation includes the invoice he is paying off, if known. A 10% discount of $50 is applied, which is recorded in the sales discount column. The cash debit column reflects the net amount received of $450, while the accounts receivable credit column shows the full purchase amount.
