 In this discussion, we will discuss the discussion question of describe transactions that would use a cash receipts journal. If we see a discussion question like this or an essay question like this, we may first want to talk about the cash receipts journal when it would be used, what type of system would use it. So a cash receipts journal is typically going to be used when we have a system, typically more of a manual based system as opposed to a automated system that is using journals. Now the special journals and the idea of a system using special journals as opposed to a system that is recording each transaction in the general journal, meaning a normal system or a system that we could use is each transaction being recorded as its own separate journal entry into the general journal using each of those transactions to then post to the general ledger and make the trial balance and financial statements from them. But we could also use a different system, the goal being to reduce the amount of data input, reduce the amount of times we have to record something into the general journal, reduce the amount of posting to the general ledger in order to save time. So to do that, we would group the information into transactions that would be similar and be able to make these types of journals, that special journals that would be designed to record typical transactions more easily. And then instead of recording each transaction as it happens to the general ledger and posting each to the general ledger, we would then just record this information into the special journal and plan on adding them up at the end of the time period recording one transaction for the entire special journal for the entire period, whether that be the day week or month. So that would be the goal, the goals to save time. Now the cash receipts journal is going to be one of those special journals that we could use in this type of system used in order to save time. So the other types of journals just to compare and contrast them, we might have a sales journal, we might have a purchases journal, we could have a cash receipts journal and a cash payment journal. Now the cash receipts journal should sound more grouping transactions remember that are of a similar nature and the cash receipts journal would be grouping those that would be similar in that we have cash receipts and that's that's going to be the ones that will go into the cash receipts journal. Now you would think that the cash receipts journal that could be a lot of different things, but the cash receipts journal is going to be most effective if we receive our cash from similar transactions most of the time. For example, if we make sales for cash and that's what we do, then even though we and this is the most confusing piece of the cash receipts journal and the sales journal, because if we make a sale, you would think it would go in the sales journal, but the sales journal is really sales for on account. So if you made a sale and increased accounts receivable and sales, the cash receipts journal on the other hand is going to be used anytime that we receive cash. So if we made a sale for cash, it would not go in the sales journal, but here to the cash receipts journal. And if that's our typical transaction, if we make cash, if we make sales for cash all day long, then the cash receipts journal is very useful because we can record it much more quickly in the cash receipts journal and sum it up at the end of the time period. But any other transaction that receives cash would go here as well. Now the other common transaction, if we make sales on account and then we get paid, then the transaction that would be increasing cash and decreasing accounts receivable would be a common transaction. And we would have that in the cash receipts journal as well. Now any other transaction that deals with the receipt of cash would have to go here as well. So if we had the owner invested money into the business or if there was a loan that we received cash for, if we got interest, we earned interest and it was we got cash for it. Any type of thing that we got cash for now, typically we only get cash for a few things, hopefully sales is why we got cash. But any of these other type of things would also go in the cash receipts journal because they're more unusual and more rare of transactions, they don't occur all the time as sales hopefully does, then we may not have a separate column, we may have to put it into the other column, some column called other, and then break it out as we make the transaction at the end of the time period. At the end of the time period, the cash receipts journal, like all journals, will add them up, add up the information, sum up the information for the time period covered, whether that be day, week, or month. And then we'll post one transaction to the general journal representing all the activity for the cash receipts journal to the general journal. And then we'll post that journal entry to the general ledger creating the trial balance then from that and the financial statements.