Critical Thinking Chapter 16

1. Special journals have amount columns that are used to record debits and credits to specific general ledger accounts. The purpose of a special journal is to simplify the journalizing and posting process.
2. Sales journal is a special journal used to record sales of merchandise on account. A cash receipts journal is a special journal used to record all cash receipt transactions.
3. To prove the Accounts Receivable Subsidiary Ledger I would prepare a schedule of accounts receivable that lists each charge customer, the balance in the customers account, and the total amount due from all customers.
4. A receipt of  cash from a charge customer will decrease the amount owed by the customer in the Accounts Receivable Credit column, while a receipt of cash at the time of merchandise sale is entered in the journal Sales Credit column and the Cash In Bank Debit column.
5. The errors is that the schedule of accounts shows the amount due while accounts receivable shows that they have actually paid so far.
6. Maintaining special journals will keep all of your data in an organized and easy to find fashion.



"Special Journals." Special Journals. N.p., n.d. Web. 14 Mar. 2014. <http://www.cliffsnotes.com/more-subjects/accounting/accounting-principles-i/subsidiary-ledgers-and-special-journals/special-journals>.