[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:00.04,0:00:01.48,Default,,0000,0000,0000,,and then we're going to credit.
Dialogue: 0,0:00:01.48,0:00:05.92,Default,,0000,0000,0000,,We want to make sure we credit the full balance
Dialogue: 0,0:00:05.92,0:00:13.72,Default,,0000,0000,0000,,of the accounts receivable\Nfor the customer, okay?
Dialogue: 0,0:00:13.72,0:00:18.56,Default,,0000,0000,0000,,So, we know that we're crediting $700.\NOkay, we know that.
Dialogue: 0,0:00:18.56,0:00:22.48,Default,,0000,0000,0000,,And we're also going to figure out what my discount is,
Dialogue: 0,0:00:22.48,0:00:28.32,Default,,0000,0000,0000,,and that's $700 times 4%.
Dialogue: 0,0:00:28.32,0:00:30.92,Default,,0000,0000,0000,,So, that's $28 in discount.
Dialogue: 0,0:00:30.92,0:00:33.60,Default,,0000,0000,0000,,And so, the cash we're actually going\Nto receive from the customer
Dialogue: 0,0:00:33.60,0:00:39.72,Default,,0000,0000,0000,,is going to be 700 minus 28, which is 672.
Dialogue: 0,0:00:39.72,0:00:44.08,Default,,0000,0000,0000,,So, I want to go to my subsidiary ledger
Dialogue: 0,0:00:44.08,0:00:47.76,Default,,0000,0000,0000,,and I want to reflect that we have a payment.
Dialogue: 0,0:00:47.76,0:00:53.72,Default,,0000,0000,0000,,So, payment for ticket number 51,
Dialogue: 0,0:00:53.72,0:00:56.92,Default,,0000,0000,0000,,uh, with discount, okay?
Dialogue: 0,0:00:56.92,0:01:06.01,Default,,0000,0000,0000,,And this is going to be general ledger... E, I think.
Dialogue: 0,0:01:06.01,0:01:09.37,Default,,0000,0000,0000,,And that is going to be a credit because the customer pay you.
Dialogue: 0,0:01:09.37,0:01:12.49,Default,,0000,0000,0000,,They no longer owe you $1050.
Dialogue: 0,0:01:12.49,0:01:16.05,Default,,0000,0000,0000,,So, they are paying, um...
Dialogue: 0,0:01:16.05,0:01:20.45,Default,,0000,0000,0000,,How much are they paying?
Dialogue: 0,0:01:20.45,0:01:23.49,Default,,0000,0000,0000,,They are paying $700.
Dialogue: 0,0:01:23.49,0:01:27.13,Default,,0000,0000,0000,,Now, if you're in class, you will be,\N"Hey, Irene, you made a mistake."
Dialogue: 0,0:01:27.13,0:01:32.41,Default,,0000,0000,0000,,The mistake I made is my payment went to the wrong customer.
Dialogue: 0,0:01:32.41,0:01:34.61,Default,,0000,0000,0000,,My payment did not go to Ron;
Dialogue: 0,0:01:34.61,0:01:38.17,Default,,0000,0000,0000,,it went to B. Durant.
Dialogue: 0,0:01:38.17,0:01:41.89,Default,,0000,0000,0000,,So, when you do your problem, you have to be really careful
Dialogue: 0,0:01:41.89,0:01:47.85,Default,,0000,0000,0000,,and make sure that you pay to the right customer, okay?
Dialogue: 0,0:01:47.85,0:01:53.85,Default,,0000,0000,0000,,So, we make a payment and that payment was $700.
Dialogue: 0,0:01:53.85,0:01:56.81,Default,,0000,0000,0000,,It's not $700 cash that you receive,
Dialogue: 0,0:01:56.81,0:02:00.49,Default,,0000,0000,0000,,but because, remember, the customer pay within the discount period.
Dialogue: 0,0:02:00.49,0:02:07.26,Default,,0000,0000,0000,,They pay on a 10, the transaction happened on the 3rd,\Nso that's within ten days.
Dialogue: 0,0:02:07.26,0:02:11.02,Default,,0000,0000,0000,,You are-- you still want to make sure you credit\Nthe full amount of accounts receivable.
Dialogue: 0,0:02:11.02,0:02:14.02,Default,,0000,0000,0000,,Otherwise, when you run the report at the end of the month,
Dialogue: 0,0:02:14.02,0:02:15.70,Default,,0000,0000,0000,,how much each customer owes you,
Dialogue: 0,0:02:15.70,0:02:19.50,Default,,0000,0000,0000,,it will still show that the customer owes you that $28.
Dialogue: 0,0:02:19.50,0:02:23.18,Default,,0000,0000,0000,,This is why you would want to debit cash and debit sales discount,
Dialogue: 0,0:02:23.18,0:02:26.66,Default,,0000,0000,0000,,and then credit the full amount $700.
Dialogue: 0,0:02:26.66,0:02:30.82,Default,,0000,0000,0000,,So, we have a credit of $700.
Dialogue: 0,0:02:30.82,0:02:34.78,Default,,0000,0000,0000,,So that's $950-- sorry--
Dialogue: 0,0:02:34.78,0:02:39.54,Default,,0000,0000,0000,,plus the debit side, minus the credit side.
Dialogue: 0,0:02:39.54,0:02:42.26,Default,,0000,0000,0000,,And so, it's $250 that this customer owe you,
Dialogue: 0,0:02:42.26,0:02:44.02,Default,,0000,0000,0000,,which is the beginning balance
Dialogue: 0,0:02:44.02,0:02:48.18,Default,,0000,0000,0000,,from a previous month that we carry over.
Dialogue: 0,0:02:48.18,0:02:51.50,Default,,0000,0000,0000,,All right, so that's E, what's F?
Dialogue: 0,0:02:51.50,0:02:56.62,Default,,0000,0000,0000,,F: we sold $3,000 merchandise inventory to Penny Pry.
Dialogue: 0,0:02:56.62,0:02:59.86,Default,,0000,0000,0000,,Sales price is-- our sales ticket is number 53;
Dialogue: 0,0:02:59.86,0:03:02.70,Default,,0000,0000,0000,,term, again, is the same, 4/10; net, 30.
Dialogue: 0,0:03:02.70,0:03:06.22,Default,,0000,0000,0000,,Cost of merchandise was $2,100.
Dialogue: 0,0:03:06.22,0:03:14.03,Default,,0000,0000,0000,,So, we want to make sure we record a debit\Nto accounts receivable to Penny.
Dialogue: 0,0:03:14.03,0:03:16.87,Default,,0000,0000,0000,,So, that's Penny.
Dialogue: 0,0:03:16.87,0:03:21.27,Default,,0000,0000,0000,,And then, the sale was for $3,000.
Dialogue: 0,0:03:21.27,0:03:25.79,Default,,0000,0000,0000,,We want to make sure we credit sales revenue.
Dialogue: 0,0:03:25.79,0:03:29.11,Default,,0000,0000,0000,,And then, we want to make sure we debit cost of goods sold,
Dialogue: 0,0:03:29.11,0:03:32.63,Default,,0000,0000,0000,,and then also credit merchandise inventory.
Dialogue: 0,0:03:32.63,0:03:35.79,Default,,0000,0000,0000,,The cost of merchandise inventory is given to us,
Dialogue: 0,0:03:35.79,0:03:42.15,Default,,0000,0000,0000,,and that is $2100.
Dialogue: 0,0:03:42.15,0:03:45.35,Default,,0000,0000,0000,,So, again, you would make that journal entry on the same day.
Dialogue: 0,0:03:45.35,0:03:49.15,Default,,0000,0000,0000,,We're going to go to the subsidiary ledger for Penny.
Dialogue: 0,0:03:49.15,0:03:53.99,Default,,0000,0000,0000,,So, we're going to find Penny's account-- subsidiary ledger.
Dialogue: 0,0:03:53.99,0:03:58.39,Default,,0000,0000,0000,,And Penny also have a beginning balance
Dialogue: 0,0:03:58.39,0:04:01.95,Default,,0000,0000,0000,,that's given to us in the data\Nand sometimes it's kind of hidden.
Dialogue: 0,0:04:01.95,0:04:03.87,Default,,0000,0000,0000,,Kind of have to make sure you read really carefully.
Dialogue: 0,0:04:03.87,0:04:07.51,Default,,0000,0000,0000,,So, that's where I find the $800 beginning balance.
Dialogue: 0,0:04:07.51,0:04:11.37,Default,,0000,0000,0000,,So, I'm going to put that beginning balance of $800 for penny.
Dialogue: 0,0:04:11.37,0:04:15.05,Default,,0000,0000,0000,,Um, this transaction happened on the 20th.
Dialogue: 0,0:04:15.05,0:04:17.69,Default,,0000,0000,0000,,It is, um, transaction F.
Dialogue: 0,0:04:17.69,0:04:25.49,Default,,0000,0000,0000,,We are still in, um, page two of the General Journal,
Dialogue: 0,0:04:25.49,0:04:31.97,Default,,0000,0000,0000,,so I'm going to make sure I put in page two of the General Journal.
Dialogue: 0,0:04:31.97,0:04:36.29,Default,,0000,0000,0000,,And this is going to be transaction F.
Dialogue: 0,0:04:36.29,0:04:42.17,Default,,0000,0000,0000,,And this was invoice ticket, um, 50.
Dialogue: 0,0:04:42.17,0:04:48.77,Default,,0000,0000,0000,,What was the invoice ticket?\NUm, 53, if I remember correctly.
Dialogue: 0,0:04:48.77,0:04:53.25,Default,,0000,0000,0000,,And this was a debit of $3,000.
Dialogue: 0,0:04:53.25,0:04:56.37,Default,,0000,0000,0000,,So, now...
Dialogue: 0,0:04:56.37,0:05:05.33,Default,,0000,0000,0000,,let's extend penny Pry owe our business
Dialogue: 0,0:05:05.33,0:05:11.45,Default,,0000,0000,0000,,So-- and then on the 22nd, what happened on the 22nd?
Dialogue: 0,0:05:11.45,0:05:14.74,Default,,0000,0000,0000,,We receive a cash payment from Ron
Dialogue: 0,0:05:14.74,0:05:18.70,Default,,0000,0000,0000,,for March 4th transaction ticket number 51.
Dialogue: 0,0:05:18.70,0:05:19.78,Default,,0000,0000,0000,,Okay.
Dialogue: 0,0:05:19.78,0:05:24.78,Default,,0000,0000,0000,,So, we want to make sure we go back and look at ticket 51.
Dialogue: 0,0:05:24.78,0:05:28.30,Default,,0000,0000,0000,,Ticket 51 happened on the 4th
Dialogue: 0,0:05:28.30,0:05:35.46,Default,,0000,0000,0000,,and Ron is making a payment on the 22nd,
Dialogue: 0,0:05:35.46,0:05:38.18,Default,,0000,0000,0000,,so more than ten days has passed.
Dialogue: 0,0:05:38.18,0:05:41.46,Default,,0000,0000,0000,,The customer will have to pay the full valu-- full balance.
Dialogue: 0,0:05:41.46,0:05:43.42,Default,,0000,0000,0000,,They don't get to enjoy the sales discount
Dialogue: 0,0:05:43.42,0:05:45.22,Default,,0000,0000,0000,,because it's been more than ten days.
Dialogue: 0,0:05:45.22,0:05:48.66,Default,,0000,0000,0000,,And that sales revenue was $50,
Dialogue: 0,0:05:48.66,0:05:53.70,Default,,0000,0000,0000,,so we want to make sure we record that as cash payment.
Dialogue: 0,0:05:53.70,0:05:58.50,Default,,0000,0000,0000,,So, we got that cash payment; we debit cash.
Dialogue: 0,0:05:58.50,0:06:03.02,Default,,0000,0000,0000,,And then, we credit the accounts receivable for Ron,
Dialogue: 0,0:06:03.02,0:06:06.06,Default,,0000,0000,0000,,which Irene is kind of lazy to type everything,
Dialogue: 0,0:06:06.06,0:06:11.14,Default,,0000,0000,0000,,so the magic of Excel will allow me to...
Dialogue: 0,0:06:11.14,0:06:12.14,Default,,0000,0000,0000,,copy and paste!
Dialogue: 0,0:06:12.14,0:06:14.94,Default,,0000,0000,0000,,And that is $500 that we receive.