Accounting and Finance Foundations

Unit 2

Accounting and Finance Foundations Unit 2: Accounting and Finance Math Workshop 141

Accounting and Finance Math Workshop

Lesson 5.5 Sales Receipts

Student Guide

Most store employees give customers a cash register receipt or sales invoice after a transaction has been

completed. Customers may use these slips to check that all items bought were received and that the prices

and calculations were correct. Sales receipts/invoices can also be used as expense records for business

travelers or serve as proofs of purchase if items are returned.

Sales receipts show:

• number of units or quantity and a description of each item
  • unit price—or the price of one item or group of items treated as one. For example, a ream of paper
  is treated as one unit even though each ream contains 500 sheets of paper.


• the unit price multiplied by the quantity of each item, also called extension. For example, 3 reams of
  paper at $3.19 for each ream will give the extension $9.57.


• subtotal or the sum of the extensions


• sales tax


• total sale

Sales extensions are the total price of each quantity on a sales slip. “At” or “@” means the price of a single

unit. To find the price of an extension, multiply the quantity by the unit price.

For example, 3 dozen batteries @ $3, means that you are getting 36 batteries for $9 (3 x $3).

Example

1 dozen pens @ $4.99 per dozen

2 M (thousand) rolls of toilet paper @ $450 per thousand

2 C (hundred) mouse pads @ $358 per one hundred

Solution

1 x $4.99 = $4.99 (12 pens for $4.99)

2 x $450 = $900 (2000 rolls for $900)

2 x $358 = $716 (200 mouse pads for $716)

Sales Slip Totals are found by adding the extensions to get the subtotal. If there is sales tax and it

is applied to all items sold, the tax rate is multiplied by the subtotal to find the tax amount. Then the

subtotal and tax amount are added to find the total amount of the sales slip.

Subtotal =  Sum of  Extensions

Sales Tax Amount =  Subtotal    x   Sales   Tax Rate

Total   of  Sales   Slip    =   Subtotal    + Sales Tax Amount

Business Tip

Gross 12 Dozen

C Hundred

M Thousand

T Ton (2000 lbs)

Chapter 5