GOALS

Lesson 12.1 Slide 1BUSINESS MATH © Thomson/South-Western

12.1 Cash Sales and Sales on Account

Complete a cash proof form Calculate sales invoice and credit

memo totals Calculate a customer account balance

Lesson 12.1 Slide 2BUSINESS MATH © Thomson/South-Western

Cash Registers

Cash registers provide a place to keep cash and a means to record cash sales and payments.

Employees who use cash registers are called cash register clerks or cashiers.

Lesson 12.1 Slide 3BUSINESS MATH © Thomson/South-Western

Computer Terminals

Most cash registers are computer terminals with a display screen and a scanner that is connected to a computer.

The scanner reads bar codes printed on the items being purchased.

The bar codes tell the computer the department, brand, size, and price of each item bought.

Lesson 12.1 Slide 4BUSINESS MATH © Thomson/South-Western

Display Screen and Cash Register Receipt

This information is shown on the display screen and printed on a cash register receipt.

The computer also finds the sales tax, totals the sale, and updates inventory records.

When the clerk keys in the amount received from the customer, the correct change is displayed on the screen.

The computer also keeps a running total of sales.

Lesson 12.1 Slide 5BUSINESS MATH © Thomson/South-Western

Change Fund

Cashiers put money in the cash register drawer when they start work so they can make change.

This money is called a change fund. While they work, they take in and pay out

cash. At the end of their work period, cashiers take a

reading of total sales for their register. Then they have to prove cash.

Lesson 12.1 Slide 6BUSINESS MATH © Thomson/South-Western

Proving Cash

Proving cash means counting the money in the drawer and checking this amount against the cash register readings to see if the right amount is on hand.

A cash proof form is used for this purpose. If you have less cash than you should, you

are cash short. If you have more cash than you should, you

are cash over.

Lesson 12.1 Slide 7BUSINESS MATH © Thomson/South-Western

Sales Invoice

When a seller sells goods to a buyer on credit, the seller gives the customer a sales invoice.

A sales invoice lists the goods sold and delivered to the buyer.

The buyer calls this form a purchase invoice. On the sales invoice the unit price is multiplied by the

quantity to find the price extension. The price extensions are added together to find the

total amount of the invoice.

Lesson 12.1 Slide 8BUSINESS MATH © Thomson/South-Western

Sample Sales Invoice

Lesson 12.1 Slide 9BUSINESS MATH © Thomson/South-Western

Credit Memo

When merchandise bought on credit is returned, the seller does not return the buyer’s money.

Instead, the seller reduces the buyer’s account balance by the amount of the return.

The seller notifies the buyer about the reduction by sending the buyer a credit memorandum, or credit memo.

Lesson 12.1 Slide 10BUSINESS MATH © Thomson/South-Western

Sample Credit Memo

Lesson 12.1 Slide 11BUSINESS MATH © Thomson/South-Western

BUSINESS TIPBUSINESS TIP

A credit memo may be issued when the buyer returns defective goods to the seller or when the seller gives a price reduction for damaged goods reported by the buyer.

Sometimes a buyer returns stock for other reasons.

If so, the seller may charge a restocking fee that is deducted from the credit the buyer would normally receive.

Lesson 12.1 Slide 12BUSINESS MATH © Thomson/South-Western

Customer Account Balance

Most people use credit cards when they do not pay cash for a purchase.

Businesses whose customers are other businesses often let them buy on credit, or on account.

The seller then keeps records for each customer to show how much each customer owes.

Lesson 12.1 Slide 13BUSINESS MATH © Thomson/South-Western

Common Form of Customer Account