©2012 pearson education, inc. publishing as prentice hall 6-1 quickbooks® 2011: a complete course...

69
©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING BUSINESS

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Page 1: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-1

QUICKBOOKSreg 2011 A COMPLETE COURSE

CHAPTER 6mdashLECTURE PAYABLES AND PURCHASES MERCHANDISING BUSINESS

All rights reserved No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any

means electronic mechanical photocopying recording or otherwise without the prior written permission of the publisher Printed in the

United States of America

Copyright copy 2012 Pearson Education Inc publishing as Prentice Hall

copy2012 Pearson Education Inc publishing as Prentice Hall

6-3

Chapter Focus Payables and Purchases

bull QuickBooksrsquos inventory features are exploredbull Chapter features include recording purchase

ordersbull Receiving merchandise with and without a billbull Payment of bills using QuickBooksrsquo pay bill

featurebull Pay bills by preparing checks or using credit

cardsbull Pay sales tax liabilities

copy2012 Pearson Education Inc publishing as Prentice Hall

6-4

Accounting for Purchases and Payables Inventory

bull QuickBooks uses the Average Cost method of inventory valuation Example

bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40

= the average cost of one pair of skis $250

bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise

copy2012 Pearson Education Inc publishing as Prentice Hall

6-5

Accounting for Purchases and Payables Cost of Goods Sold

bull The Cost of Goods Sold is the average cost you pay for an item you sell

bull Cost of Goods Sold is used when merchandise is sold in a business

bull Cost of Goods Sold is calculated on the Income Statement

copy2012 Pearson Education Inc publishing as Prentice Hall

6-6

Accounting for Purchases and Payables Cost of Goods Sold

bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit

bull Example without Merchandise DiscountIncome $5000

ndash Net Cost of Goods Sold 1000

= Gross Profit $4000

ndash Expenses 2000

= Net Income $2000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-7

Accounting for Purchases and Payables Discounts

bull Three types of Discounts used Merchandise Discount is a discount on sales items

that are purchased for resale (Cost of Goods Sold account)

Purchase Discount is a discount for early payment for purchases made to run the business (Income account)

bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30

Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 2: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

All rights reserved No part of this publication may be reproduced stored in a retrieval system or transmitted in any form or by any

means electronic mechanical photocopying recording or otherwise without the prior written permission of the publisher Printed in the

United States of America

Copyright copy 2012 Pearson Education Inc publishing as Prentice Hall

copy2012 Pearson Education Inc publishing as Prentice Hall

6-3

Chapter Focus Payables and Purchases

bull QuickBooksrsquos inventory features are exploredbull Chapter features include recording purchase

ordersbull Receiving merchandise with and without a billbull Payment of bills using QuickBooksrsquo pay bill

featurebull Pay bills by preparing checks or using credit

cardsbull Pay sales tax liabilities

copy2012 Pearson Education Inc publishing as Prentice Hall

6-4

Accounting for Purchases and Payables Inventory

bull QuickBooks uses the Average Cost method of inventory valuation Example

bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40

= the average cost of one pair of skis $250

bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise

copy2012 Pearson Education Inc publishing as Prentice Hall

6-5

Accounting for Purchases and Payables Cost of Goods Sold

bull The Cost of Goods Sold is the average cost you pay for an item you sell

bull Cost of Goods Sold is used when merchandise is sold in a business

bull Cost of Goods Sold is calculated on the Income Statement

copy2012 Pearson Education Inc publishing as Prentice Hall

6-6

Accounting for Purchases and Payables Cost of Goods Sold

bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit

bull Example without Merchandise DiscountIncome $5000

ndash Net Cost of Goods Sold 1000

= Gross Profit $4000

ndash Expenses 2000

= Net Income $2000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-7

Accounting for Purchases and Payables Discounts

bull Three types of Discounts used Merchandise Discount is a discount on sales items

that are purchased for resale (Cost of Goods Sold account)

Purchase Discount is a discount for early payment for purchases made to run the business (Income account)

bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30

Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 3: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-3

Chapter Focus Payables and Purchases

bull QuickBooksrsquos inventory features are exploredbull Chapter features include recording purchase

ordersbull Receiving merchandise with and without a billbull Payment of bills using QuickBooksrsquo pay bill

featurebull Pay bills by preparing checks or using credit

cardsbull Pay sales tax liabilities

copy2012 Pearson Education Inc publishing as Prentice Hall

6-4

Accounting for Purchases and Payables Inventory

bull QuickBooks uses the Average Cost method of inventory valuation Example

bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40

= the average cost of one pair of skis $250

bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise

copy2012 Pearson Education Inc publishing as Prentice Hall

6-5

Accounting for Purchases and Payables Cost of Goods Sold

bull The Cost of Goods Sold is the average cost you pay for an item you sell

bull Cost of Goods Sold is used when merchandise is sold in a business

bull Cost of Goods Sold is calculated on the Income Statement

copy2012 Pearson Education Inc publishing as Prentice Hall

6-6

Accounting for Purchases and Payables Cost of Goods Sold

bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit

bull Example without Merchandise DiscountIncome $5000

ndash Net Cost of Goods Sold 1000

= Gross Profit $4000

ndash Expenses 2000

= Net Income $2000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-7

Accounting for Purchases and Payables Discounts

bull Three types of Discounts used Merchandise Discount is a discount on sales items

that are purchased for resale (Cost of Goods Sold account)

Purchase Discount is a discount for early payment for purchases made to run the business (Income account)

bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30

Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 4: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-4

Accounting for Purchases and Payables Inventory

bull QuickBooks uses the Average Cost method of inventory valuation Example

bull Purchase 20 pairs of skis for $200 = $4000bull Purchase 20 pairs of skis for $300 = $6000bull Total value of the 40 pairs of skis = $10000bull Total value of $10000 divided by the total number of skis 40

= the average cost of one pair of skis $250

bull QuickBooks automatically tracks inventory and tells you when you need to reorder merchandise

copy2012 Pearson Education Inc publishing as Prentice Hall

6-5

Accounting for Purchases and Payables Cost of Goods Sold

bull The Cost of Goods Sold is the average cost you pay for an item you sell

bull Cost of Goods Sold is used when merchandise is sold in a business

bull Cost of Goods Sold is calculated on the Income Statement

copy2012 Pearson Education Inc publishing as Prentice Hall

6-6

Accounting for Purchases and Payables Cost of Goods Sold

bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit

bull Example without Merchandise DiscountIncome $5000

ndash Net Cost of Goods Sold 1000

= Gross Profit $4000

ndash Expenses 2000

= Net Income $2000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-7

Accounting for Purchases and Payables Discounts

bull Three types of Discounts used Merchandise Discount is a discount on sales items

that are purchased for resale (Cost of Goods Sold account)

Purchase Discount is a discount for early payment for purchases made to run the business (Income account)

bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30

Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 5: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-5

Accounting for Purchases and Payables Cost of Goods Sold

bull The Cost of Goods Sold is the average cost you pay for an item you sell

bull Cost of Goods Sold is used when merchandise is sold in a business

bull Cost of Goods Sold is calculated on the Income Statement

copy2012 Pearson Education Inc publishing as Prentice Hall

6-6

Accounting for Purchases and Payables Cost of Goods Sold

bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit

bull Example without Merchandise DiscountIncome $5000

ndash Net Cost of Goods Sold 1000

= Gross Profit $4000

ndash Expenses 2000

= Net Income $2000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-7

Accounting for Purchases and Payables Discounts

bull Three types of Discounts used Merchandise Discount is a discount on sales items

that are purchased for resale (Cost of Goods Sold account)

Purchase Discount is a discount for early payment for purchases made to run the business (Income account)

bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30

Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 6: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-6

Accounting for Purchases and Payables Cost of Goods Sold

bull Calculated Income ndash Net Cost of Goods Sold = Gross Profit Gross Profit ndash Expenses = Net Profit

bull Example without Merchandise DiscountIncome $5000

ndash Net Cost of Goods Sold 1000

= Gross Profit $4000

ndash Expenses 2000

= Net Income $2000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-7

Accounting for Purchases and Payables Discounts

bull Three types of Discounts used Merchandise Discount is a discount on sales items

that are purchased for resale (Cost of Goods Sold account)

Purchase Discount is a discount for early payment for purchases made to run the business (Income account)

bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30

Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 7: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-7

Accounting for Purchases and Payables Discounts

bull Three types of Discounts used Merchandise Discount is a discount on sales items

that are purchased for resale (Cost of Goods Sold account)

Purchase Discount is a discount for early payment for purchases made to run the business (Income account)

bull For example a discount on office supplies when paying early with terms of 210 n 30 or 110 n 30

Sales Discount is used when you give customers a discount for early payment with terms of 210 n 30 or 110 n 30 (Expense account)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 8: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-8

Accounting for Purchases and Payables Effect of Merchandise Discount on Cost of Goods Sold

bull Example with Merchandise Discount

Calculate Net Cost of Goods Sold Cost of Goods Sold $1000

ndash Merchandise Discounts 100= Net Cost of Goods Sold $900

Calculate Net IncomeIncome $5000

ndash Net Cost of Goods Sold 900 = Gross Profit $4100

ndash Expenses 2000 = Net Income $2100

bull Effect of Merchandise Discount is an increase in Net Income of $100

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 9: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-9

Reminders List

bull Reminders list tells you what inventory needs to be ordered

bull Click Reminders on the Company menubull View the Reminders List

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 10: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-10

Reminders List

bull Click the Expand All button to display the items flagged for reorder

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 11: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-11

Change Reorder Limits for an Itembull Click the Items amp Services iconbull Double-click Underwearbull Change the reorder point to 35 click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 12: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-12

Inventory Stock Status by Item Report

bull An inventory report that shows Items in stock The reorder point What you have on hand What you need to order What you have on order (indicated by the

order date in Next Deliv)

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 13: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-13

Prepare the Inventory Stock Status by Item Report

bull Click the Reports button on the Item List

bull Point to Reports on All Items Inventory

bull Click Inventory Stock Status by Item

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 14: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-14

Analyze the Inventory Stock Status by Item Report

bull Sleds shows a reorder point of 5 on hand 4 and a check in the Order column

bull Sleds need to be orderedbull Boots-Snowbrd Gloves Poles-Ski Toboggans and Underwear

also need to be ordered

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 15: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-15

Prepare Purchase Orders Add a New Vendor

bull 011511 Order 3 sleds for $50 each from a new vendor Snow Gear

bull Click Purchase Order iconbull Type Vendor Name Snow Gear press Tabbull Click the Set Up button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 16: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-16

Add a New Vendor

bull Complete the Address Info tab Opening Balance 000

as of 01152011 Company Name Snow

Gear Address

7105 Camino del Rio Durango CO 81302

Contact Leo Jenkins Phone 303-555-7765 FAX 303-555-5677

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 17: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-17

Add a New Vendor

bull Complete Additional Info tab Terms

2 10 Net 30 Credit Limit

$200000

bull Click OK to add the vendor

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 18: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-18

Complete the Purchase Order

bull Hide the Historybull Resize by pointing to right side

and dragging the sizing handle to the left

bull Date 011511bull Item Sledsbull Quantity 3bull Rate 50 press Tabbull Click No on the Itemrsquos Cost

Changed Item Cost in the Item List is

000 If you change the item cost it

will always show $5000 Not all the sleds we order will

be $5000

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 19: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-19

Complete Purchase Order

bull Click Save amp New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 20: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-20

Prepare Purchase Orderbull 01152011 Gloves need to be orderedbull Prepare a purchase order for 25 pairs of gloves at $15 each from Clothes

Incbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 21: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-21

Purchase Order QuickReport

bull Purchase Order QuickReport shows all open purchase orders

bull There are columns for Type Purchase Order Date date of the purchase order Num purchase order number Name of the vendor Memo if any Split for Account name(s) Amount of the purchase order

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 22: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-22

Purchase Order QuickReportbull Prepare Purchase

Order QuickReportbull Click Chart of

Accounts iconbull Scroll to the

bottom of the Chart of Accounts

bull Double-click 2 Purchase Orders

bull Enter the dates of 010111 ndash 011511

bull Information for Purchase Orders 1 and 2 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 23: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-23

Receiving Items Ordered

bull When ordered items are received the quantity received may be complete or partial

bull The order may be received with or without a bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 24: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-24

Record Receipt of Items in Full without the Bill

bull Recording an item receipt without the bill allows QuickBooks to show the items in stock and to keep the inventory count accurate

bull Record the receipt of 3 sleds ordered from Snow Gear

bull Click Receive Inventory iconbull Click Receive Inventory without Bill

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 25: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-25

Record Receipt of Items in Full without the Bill

bull Click Snow Gear as vendor on the drop-down list

bull Click Yes for Open Purchase Orders

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 26: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-26

Record Receipt of Items in Full without the Bill

bull To select PO No 1 click in the check columnbull Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 27: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-27

Analyze Item Receipt

bull Note the mark of ldquoItem Receipt Onlyrdquo

bull The Memo shows Received items (Bill to follow)

bull Automatically the Qty shows 3

bull The Cost shows 5000

bull The Amount is 15000

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 28: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-28

Use Search to View Purchase Order

bull To view the Purchase Order click the PO button

bull Click Previous until you get to PO 1

bull The Purchase Order is automatically marked RECEIVED IN FULL

bull The Rcvrsquod column shows 3

bull Clsd has a check to indicate that the purchase order is closed

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 29: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-29

Record Receipt of Bill After Items Have Been Received

bull The receipt of 3 sleds from Snow Gear was already recorded to record the bill Click the Enter Bills

Against Inventory icon

On the Select Item Receipt screen click drop-down list arrow for Vendor click Snow Gear

There is no check column so click the line with the Item Receipt to highlight

Click OK

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 30: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-30

Record Receipt of Bill After Items Have Been Received

bull Complete the bill Date

011811 Ref No

97

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 31: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-31

Record Partial Receipt of Items with a Bill

bull Click the Receive Inventory icon

bull Click Receive Inventory with Bill

bull The Vendor is Clothes Inc

bull Click Yes on Open Porsquos exist

bull Select PO No 2bull Click OKbull The Date of the bill

should be 01152011

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 32: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-32

Record Partial Receipt of Items with a Bill

bull The bill shows Qty of 25

bull Change the Qty to 20

bull Press Tab to change the Amount

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 33: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-33

Use Search to View Purchase Orders and Reports

bull Access Purchase Orders by using Search

bull Click the Search icon on the icon bar

bull Search allows you to search for transactions and reports associated with a transaction

bull Type Purchase Orders in the textbox

bull Click Update search information so the search will include the most recent transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 34: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-34

Use Search to View Purchase Orders and Reports

bull QuickBooks will scan the transactions and include all of the recent entries

bull There are several Purchase Orders reports available

bull Point to Open Purchase Orders

bull Click the Locate Menu icon to show the menu selection for the report

bull The menus used to prepare the Open Purchase Orders are shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 35: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-35

Use Search to View Purchase Orders and Reports

bull Click the Launch icon to prepare the report

bull Enter the dates 010111 to 011511 Purchase Order 2 is listedbull Purchase Order 1 was closed when the items were received in

full so only Purchase Order 2 shows in the report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 36: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-36

Use Search to View Purchase Orders and Reports

bull Point to Purchase Order 2 click the Open icon

bull Purchase Order 2 is shown

bull Qty is 25bull Backordered is 5bull Rcvrsquod is 20

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 37: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-37

Manually Close a Purchase Order

bull Purchase Order 2 was for 25 pairs of gloves

bull Clothes Inc is no longer stocking the gloves you ordered

bull Since you only received 20 pairs of gloves and will not receive the 5 pairs on back order you need to manually close Purchase Order 2

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 38: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-38

Manually Close a Purchase Order

bull Click Purchase Orders iconbull Click Previous until you get to PO 2 for Clothes

Incbull The Purchase Order shows Qty 25

Backordered 5 and Rcvrsquod 20bull Clsd is blank

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 39: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-39

Manually Close a Purchase Order

bull Click in the Clsd column to checkbull Backordered is now 0bull The Purchase Order is marked CLOSEDbull Click Save amp Close and close Search

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 40: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-40

Prepare a Credit Memo for an Item Return

bull Click the Enter Bills icon

bull Click Creditbull Enter the return

of return one sled for $50 to Snow Gear on 011811

bull Click No if you get a change item cost screen

bull Click Save amp Close when finished

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 41: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-41

Record a Credit Card Purchase

bull 012011 use the company Visa credit card to purchase Fax paper for $2198 to have on hand from Sierra Office Supply Company

bull Click Banking on the menu barbull Click Enter Credit Card Charges

OR bull Click the Enter Credit Card

Charges icon in the Banking section of the Home Page

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 42: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-42

Record a Credit Card Purchase

bull Credit Card is 2100 - Visa

bull Click the drop-down list arrow for Purchase From

bull Click Sierra Office Supply Company press Tab

bull Click OK on the Warning screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 43: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-43

Record a Credit Card Purchase

bull Date 012011bull Amount 2198bull Account 1311

Office Supplies (Supplies are purchased to have on hand so the asset is used)

bull Memo Purchase Fax Paper to Have on Hand

bull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 44: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-44

Pay Bill for Merchandise and Use a Discount

bull Click the Pay Bills iconbull Verify

Payment Date 012011 Payment Method Check Payment Account 1100 Checking

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 45: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-45

Pay Bill for Merchandise and Use a Discount

bull Show all billsbull Filter By All vendors and Sort by Due Datebull Click the bill for Clothes Inc to select

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 46: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-46

Pay Bill for Merchandise and Use a Discount

bull Notice the Discount amp Credit Information for the Highlighted Bill Vendor Clothes Inc Terms 2 10 Net 30 Sugg Discount 600

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 47: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-47

Pay Bill for Merchandise and Use a Discount

bull QuickBooks enters the Amount of Discount automatically

bull Click the drop-down list arrow for Discount Account

bull There is no merchandise discount account

bull Click Add New

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 48: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-48

Add a Discount Account for Merchandise

bull This payment is for the 20 pairs of gloves received

bull Gloves are merchandise that Your Name Sports sells

bull The discount account should deduct the amount of the discount from the Cost of Goods Sold in order to get a valid ldquocostrdquo of the gloves

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 49: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-49

Add a Discount Account for Merchandise

bull Account Type Cost of Goods Soldbull Number 5100bull Account Name Merchandise Discountsbull Subaccount of 5000 ndash Cost of Goods Soldbull Click Save amp Close

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 50: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-50

Complete Bill Payment for Merchandise Using a Discount

bull Amount Due 300 bull Discount Used 6bull Amt to Pay 294bull Click Done on the

Discount and Credits screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 51: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-51

Complete Bill Payment for Merchandise Using a Discount

bull Note the Amt Due of $300 Disc Used of $6 Amt to Pay of $294

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 52: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-52

Pay Bill for Merchandise and Use a Credit

bull Pay the bill to Snow Gear bull Use the discount and the credit availablebull Click the transaction for Snow Gear to mark it

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 53: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-53

Pay Bill for Merchandise and Use a Credit

bull The Discount amp Credit Information for Highlighted Bill shows a suggested discount of $3 and one credit of $50 available

bull Click the Set Discount button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 54: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-54

Pay Bill for Merchandise and Use a Credit

bull QuickBooks shows the Amount of Discount as $3 This is 2 of the total

amount due This will not change when

the credit is applied The discount amount may

be changed manually At this point accept the $3

bull The Discount Account is 5100 Merchandise Discounts

bull Click the Credits tab to apply the credit

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 55: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-55

Pay Bill for Merchandise and Use a Credit

bull Click the credit shown to select it This will insert a radic

bull Notice Amount Due was $150 Discount Used $3 Credits Used $50 Amt to Pay $97

bull Click the Done button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 56: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-56

Pay Bill for Merchandise and Use a Credit

bull Snow Gear and Clothes Inc transactions are markedbull Amt Due is shown for all the billsbull Disc Used is $3 for Snow Gear and $6 for Clothes Inc

The $9 total is shownbull Credits Used is $50 for Snow Gearbull Amt to Pay is $97 for Snow Gear and $294 for Clothes

Inc The total of $391 is shown

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 57: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-57

Pay Bill for Merchandise and Use a Credit

bull Click the Pay Selected bills button

bull The Payment Summary screen appears

bull Click Print Checks to print Alternate Click

Done and print checks individually from the Write Checks window

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 58: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-58

View Paid Billbull Click Enter Bills

iconbull Click Previous until

you get to the bill for Snow Gear

bull Since the payment was made using the Pay Bills feature of QuickBooks the bill is marked PAID Note QuickBooks

does not mark a Credit even when it has been used

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 59: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-59

Sales Tax

bull Sales tax is collected on sales of merchandise

bull Sales tax is recorded as a liability until the amount collected is paid to the appropriate government agency

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 60: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-60

Prepare a Sales Tax Liability Report

bull A Sales Tax Liability Report shows Total taxable sales Total non-taxable sales Amount of sales tax owed

to each agency

bull Click Reports on the menu bar

bull Point to Vendors amp Payables

bull Click Sales Tax Liability

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 61: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-61

Prepare a Sales Tax Liability Report

bull Report dates are from 010111 to 012511bull Enter the dates and press Tabbull Notice

Total Sales of $858223 Non-Taxable Sales of $125 Taxable Sales of $845723 Tax Rate of 725 Tax Collected $61315 Sales Tax Payable $61315 Sales Tax Agency is the California State Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 62: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-62

Pay Sales Tax

bull Click the Manage Sales Tax icon

bull Click the Pay Sales Tax button

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 63: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-63

Pay Sales Tax

bull Account 1100 ndash Checking

bull Check Date 012511

bull Show sales tax due through 012511

bull Click the Pay column to select

bull Click OKbull Click Close on

the Manage Sales Tax screen

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 64: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-64

View Checking Register

bull To see checks prepared for payment of bills and sales taxes View individually by clicking the Write Checks

icon and clicking previous Open the Checking account register to see all

checking transactions

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 65: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-65

View Checking Register

bull Open the Chart of Accountsbull Double-click Checking to open the account registerbull Note the checks to Snow Gear Clothes Inc and State

Board of Equalization

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 66: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-66

Prepare Inventory Valuation Summary Report

bull Preparing the Inventory Valuation Summary will allow you to verify the number on hand average cost asset value percentage of Total Assets sales price retail value and percentage of Total Retail value for each inventory item

bull Click Inventory on the Reports Menu

bull Click Inventory Valuation Summary

bull Enter the date 012611

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 67: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-67

Prepare Inventory Valuation Summary Report

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 68: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-68

Edit a Vendor in the Vendor Center

bull The Vendor Center is used to obtain information regarding individual vendors

bull Click the Vendor Center icon to open

bull Click Snow Supplies in the Vendor list

bull Notice the Company Name in Vendor Information shows Ski Supplies

bull Edit the vendor Snow Supplies

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information

Page 69: ©2012 Pearson Education, Inc. publishing as Prentice Hall 6-1 QUICKBOOKS® 2011: A COMPLETE COURSE CHAPTER 6—LECTURE PAYABLES AND PURCHASES: MERCHANDISING

copy2012 Pearson Education Inc publishing as Prentice Hall

6-69

Edit a Vendor in the Vendor Center

bull Click the Edit Vendor button

bull Change the Company Name to Snow Supplies

bull View the change in the Vendor Information