Cash receipts
Objective: Record cash and card receipts, including processing fees.
Recommended first: Your first journal entries
Cash receipts come from cash sales, card sales, customer collections, loans, and owner investments. For card sales, the processor often deposits the net amount after fees. Record revenue at the gross amount and the fee as an expense, so neither is hidden.
Daily cash procedures protect the business: count takings, compare with the register or sales report, deposit promptly, and record the deposit with a reference. Card processors may deposit batches a day or two later and net of fees, which creates timing differences on the bank reconciliation. Recording revenue gross and fees as an expense keeps both visible.
Check your work
- Does the recorded revenue equal the sales report, not the bank deposit?
- Is the processing fee recorded as an expense?
- Is the deposit reference recorded for matching?
$1,000 of services sold by card; processor deposits $970 after a $30 fee.
| Account | Debit | Credit |
|---|---|---|
| Cash | $970.00 | |
| Bank Fees Expense | $30.00 | |
| Service Revenue | $1,000.00 |
Common mistakes
✗ Recording revenue at the net deposit.
✓ Gross up: revenue at full price, fee as expense.
Guided practice
Use hints freely here.
Item 1 of 1
Daily cash takings
On Mar 16, 2026, Rise & Shine Bakery's register summary shows $445.00 of bread and pastry sales, all paid by card and deposited the same day. (Record only the sale; cost of goods sold is recorded separately in this exercise.)
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Independent practice
Try these without hints. Completing the lesson needs at least one independent item solved without revealing the answer.
Item 1 of 4
Card sales net of processing fee
On Mar 19, 2026, Peak Form Fitness Studio sells $510.00 of class passes (services performed today) by card. The processor deposits the sales less its 3% fee of $15.30.
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References and provenance
- OpenStax, Principles of Accounting, Volume 1: Financial Accounting (accessed 2026-10-29)
Original lesson written for Bookkeeping Exercises (AI-assisted drafting). Calculations are verified by the platform's automated accounting tests. Not yet reviewed by a credentialed accountant. Updated 2026-10-29.