What is a Sales Day Book?

Sales Day Book

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Sales Day Book

A Sales Day Book, also known as a Sales Journal or Sales Book, is a specialized accounting journal used to record and track all credit sales of a business. It’s a chronological record of sales invoices (sales on credit) issued by a business before they are posted to the general ledger. Note that it does not record cash sales; those are typically recorded in a separate cash receipts journal.

The Sales Day Book provides a clear view of sales transactions on credit during a specific period (e.g., daily, weekly). Over time, these credit sales entries are then posted or transferred to individual customer ledgers and eventually to the general ledger.

Typical information found in a Sales Day Book includes:

  • Date of the transaction
  • Invoice number
  • Customer name
  • Description of items sold
  • Amount of the sale

At the end of a particular period, the total of the Sales Day Book provides the cumulative credit sales of the business for that period.

Example of a Sales Day Book

Let’s create a fictional example of a Sales Day Book for a boutique named “Ella’s Fashions.”

Ella’s Fashions – Sales Day Book
Week of August 1st – August 7th

DateInvoice No.Customer NameDescriptionAmount ($)
Aug 1E001Janet Smith2x Floral Dresses, 1x Handbag220
Aug 2E002Diane Murphy1x Leather Jacket, 1x Silk Scarf175
Aug 4E003Lucy Chen3x Summer Blouses120
Aug 5E004Mike Thomson1x Men’s Wallet, 1x Leather Belt80
Aug 6E005Angela Wright2x Knit Sweaters110
Aug 7E006Paul Jenkins1x Men’s Suit, 1x Tie350
Total for the week1,055

Based on the Sales Day Book for “Ella’s Fashions” for the week of August 1st – 7th:

  • On August 1st, Janet Smith made a purchase on credit which was recorded in invoice number E001. She bought two floral dresses and one handbag, with a total credit sale of $220.
  • Similarly, various other credit sales were recorded on their respective dates, with associated invoice numbers, customer names, descriptions, and amounts.
  • The total credit sales for the week amounted to $1,055.

At the end of the week, the total credit sales figure of $1,055 would be posted to the general ledger. Additionally, the individual sales amounts would be posted to the respective customer accounts in the accounts receivable sub-ledger.

This Sales Day Book provides “Ella’s Fashions” with an organized way to track and manage its credit sales for the week. It helps ensure accurate record-keeping and that the financial statements will reflect the appropriate revenue figures.

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