Creating a Cash Receipts Journal Fannys Flowers is a wholesale business owned by Fanny Fitzgerald. The company sells to its customers using terms of 2/10 n 30. It is located in a state that does not have a sales tax. Fannys Flowers accepts bank credit cards (Visas and Master Cards.) Fannys bank charges 3% to process the credit card payments and amounts are deposited into the bank account the same night. Fanny has asked you to create a computerized cash receipts journal. Include columns for the Date, Account Name, and Invoice #. Also include a column so that a Post. Ref. can be used if necessary when the postings take place. In addition, include the following credit columns: Sales , Accounts Receivable and Other. Include the following debit columns: Sales Discounts, Credit Card Expense, and Cash. Assume any discounts available by the customers are taken according to the payment terms. Give the journal an appropriate page number.

Because of its quick collection process, the flower shop had only a few outstanding amounts sitting in its accounts receivable subsidiary ledger as follows from the previous month:

Outstanding A/R Balances

Brians Beautiful Flowers: $700 from sale of 12/31 Invoice 9279

Cassies Carnations: $600 from sale of 12/30 Invoice 9200

Dandys Daisies: $450 from sale of 12/30 Invoice 9205

Other than these balances, there are no other amounts due from customers.

Create a proper Cash Receipts Journal using the assumptions and guidelines above and record the following transactions for January of this current year:

Jan 1 - Sold floral arrangements for $750 cash to Annies Flowers, issuing invoice 9312.

Jan 7 Received payment in full from Dandys Daisies, against invoice 9205.

Jan 8 - Sold floral arrangements to Damontes Dalias for $800. Damonte used a Visa card to pay for his purchase. Invoice 9317.

Jan 9 - Received payment in full on account from Cassies Carnations against invoice 9200.

Jan 15 Sold floral arrangements to a new customer, Edwards Echinacea, who had not yet established credit. Paid cash of $650.00 for his purchase. Invoice 9325.

Jan 28 Sold Floral Arrangements for Floras Fauna for $685 cash. Invoice 9345.

Jan 30 Received Payment from Brians Beautiful Flowers on account against invoice 9279.

Jan 31 Received $10,000 from Bank of America, by signing a note payable that will be paid in six months. The note has an interest rate of 6% per annum.

Jan 31 Miscellaneous cash sales were made on this day by using a hired hand to sell flowers on the corner. Cash brought in totaled $1,250.00 (No invoices were used for these cash transactions.)

In addition to the above cash transactions, the following credit sales took place during January on account with the companys regular terms of 2/10 n 30. These transactions were appropriate recorded in either the sales journal or the regular general journal. (Hint: Since these werent cash sales, they dont need to be recorded in the cash receipts journal for January, but the information will be relevant to the TEST DATA information when the cash for these sales is collected.

Date Customer Invoice Amount

Jan 29 Henrys Honeysuckles 9405 $ 432.00

Jan 29 Lilas Lilac and Lavender 9510 $ 726.00

Jan 31 Rosas Roses 9517 $ 237.00

Check Figure: Cash Receipts Journal Total debits - $15,885.