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1. • CommentAuthorantgaudi
   • CommentTimeFeb 27th 2007

    
   How could the following be posted to general journals?
   What's the difference between Cash Collected and Cash Received? How can each be posted?
   
   1/3 Purchased a total of 2000 DVD's for rental at a price of $7 per unit, paying cash.
   The units will be used for rental. (WOULD THIS BE:
   INVENTORY 14,000?
   CASH 14,000?)
   
   1/22 Cash collected during the 3rd week for cash rentals of DVD's totals $4,895 (WOULD THIS BE:
   CASH 3,180?
   ACCRUED REVENUE 3,180, ACCOUNTS RECEIVABLE, OR RENTAL REVENUE?)
   
   1/22 Purchased 900 DVD's for $8 each as inventory for resale and paid cash
   
   1/29 Cash collected during the 4th week for cash rentals of DVD's totals $5,650
   Cash collected during the 4th week for cash sales of DVD's totals $986
   
   1/31 Phil provided you with the following information regarding the company's credit card sales and credit card rental activities for the month.
   (1) Credit card rental charges during January $6,054
   (2) Credit card sales of DVD's during January $3,012
   
   1/31 Cash received from credit card companies for credit card $5,184
   sales and rentals ($5,400 less a 4% fee of $216)
   for charges accrued through Jan. 22. the balance for the
   last 9 days of January will be received during the 1st week of February. (WOULD THIS BE:
   CASH 5,184?
   ACCOUNTS RECEIVABLE 5,184?)
   1/31 Cash collected between 1/29 and 1/31 after the weekly deposit on 1/29 totalling $425 for rentals and $210 for sales was deposited in the bank at the end of the day on 1/31
   
   Thanks,
   ANTGAUDI.
2. • CommentAuthorwilsone
   • CommentTimeMar 2nd 2007 edited

    
   You asked:
   What's the difference between Cash Collected and Cash Received? How can each be posted?
   
   My first thought when reading this question was that cash collected might imply that the amount was previously billed (set up as some type of accounts receivable or other receivable). If this is the case, the debit would be to cash with credit to the receivable account. Cash received would not have necessarily been billed in advance and could be received for any type of sale or service performed with a debit to cash and credit to Sales or some other revenue account.
   
   The other possibility is that there is NO difference between these two terms and they are used interchangeably.
3. • CommentAuthormia
   • CommentTimeMar 11th 2007

    
   1/3 Purchased a total of 2000 DVD's for rental at a price of $7 per unit, paying cash.
   The units will be used for rental. (WOULD THIS BE:
   INVENTORY 14,000?
   CASH 14,000?)
   
   You're purchasing it right. I'm assuming that you're trying to make your own business. So,
   
   
   debit: Purchases
   credit: Cash
   
   
   
   1/22 Cash collected during the 3rd week for cash rentals of DVD's totals $4,895 (WOULD THIS BE:
   CASH 3,180?
   ACCRUED REVENUE 3,180, ACCOUNTS RECEIVABLE, OR RENTAL REVENUE?)
   
   
   debit: cash
   credit: rental revenue
   
   
   
   1/22 Purchased 900 DVD's for $8 each as inventory for resale and paid cash
   
   
   debit: merchandise inventory
   credit: cash
   
   
   
   1/29 Cash collected during the 4th week for cash rentals of DVD's totals $5,650
   Cash collected during the 4th week for cash sales of DVD's totals $986
   
   
   debit: cash
   credit rental revenue
   
   
   debit: cash
   credit: sales
   
   
   1/31 Phil provided you with the following information regarding the company's credit card sales and credit card rental activities for the month.
   (1) Credit card rental charges during January $6,054
   (2) Credit card sales of DVD's during January $3,012
   
   
   debit: unearned revenue
   credit: accts. payable
   
   debit: sales
   credit: accts.receivable
   
   
   
   
   /31 Cash received from credit card companies for credit card $5,184
   sales and rentals ($5,400 less a 4% fee of $216)
   for charges accrued through Jan. 22. the balance for the
   last 9 days of January will be received during the 1st week of February. (WOULD THIS BE:
   CASH 5,184?
   ACCOUNTS RECEIVABLE 5,184?)
   
   
   debit: cash 5,400
   credit: accounts receivable 5184
   interest expense 216
   
   
   
   1/31 Cash collected between 1/29 and 1/31 after the weekly deposit on 1/29 totalling $425 for rentals and $210 for sales was deposited in the bank at the end of the day on 1/31
   
   
   debit: rental revenue 425
   sales 210
   credit: cash in bank 635