 Hello! In this lecture, we will define sales journal. According to fundamental accounting principles, wild 22nd edition of the definition of sales journal is journal normally used to record sales of goods on credit. We're going to use the sales journal as a type of shorthand journal to record sales, a particular type of sales. However, those sales that we make on credit, those sales that we do not receive cash for, those sales that we're going to have accounts related to the sales in. When we think of a sales journal, we can think of it in a format as if we have a paper system where we're doing our accounting transactions by hand. If we use a sales journal rather than using a general ledger, we don't have to have the debit and credit that we can record down each time. We can have a simplified system of recording the sales in the sales journal, then take that sales journal and record all the sales for a particular time period, a week, a month, a day into our system. So it could look something like this where we have the date, we could have the sale slip, the customer. The big point here is that we're going to record one number representing both the debit and the credit because this is the same transaction that we're going to record all the time. We can imagine if we're going out somewhere to do sales by hand and we're just going to record this information down. We don't really need to record the debit half and the credit half. It's all the same. We're going to have accounts receivable be debited and the sales, the revenue be credited. So we're just going to record that one time, sum up these transactions, and then record all of them in the format of a journal entry to our system at the end of the day, at the end of the week, or at the end of the month. For example, we might have the date, sales number, customer, and then we just have the one number 500. Of course, that means that it's going to be a debit to receivable and a credit to sales. We can do this for often every customer that we sell to. Obviously, we can then sum that up, then record this total for that time period into our system with a debit to account receivable and a credit to sales, also knowing that we do have to track this as well by customers so that we can go back and check the customer. So we will need to track this by subsidiary ledger as well. Important to note that even though this is called the sales journal, if we make a sale for cash, we will not record it on this journal, we'll record it on the cash receipts journal. So this is really a shorthand name for this account. This should be called sales on account journal, or sales for accounts receivable journal, because if we make a sale for cash, that will typically not go in this journal. It'll go in the cash receipts journal.