Chapter 5-Inventory.pdf - Computerized Accounting with...

  • No School
  • AA 1
  • GeneralOtter921
  • 60
  • 100% (1) 1 out of 1 people found this document helpful

This preview shows page 1 - 9 out of 60 pages.

ComputerizedAccounting withQuickBooks 2018
Chapter5InventoryReceiving and Selling Items,Processing Sales Discounts,Adjusting Quantity/Value onHand, and Paying Sales Tax© Paradigm Publishing, Inc.2
ObjectivesSlide 1© Paradigm Publishing, Inc.3Identify the two inventory systemsChange business from service based to service and productbased.Turn on Tax featureReview and Enter a new Item ListRecord purchases of inventory items using the Purchase OrderwindowRecord Inventory with bill and without billEnter Inventory purchases through the Write Checks windowIdentify transactions requiring sales taxProcess sales discounts
Objectives-Slide2© Paradigm Publishing, Inc.4Record adjustments to inventory items in theAdjust Quantity/Value on Hand windowRecord payment of sales tax in the Pay SalesTax windowDisplay and print inventory-related reportsDisplay and print accounting reports andfinancial statements
IntroductionSlide 1© Paradigm Publishing, Inc.5QuickBooks allows you to track inventory transactions.Before you can enter inventory transaction, you must establish afile for each inventory item.Inventory item files are included in the Item List (Lists/Centers).Once you establish an inventory item file, transactions for theitem can be entered in the following activity windows:Purchase Order / Receive InventoryEnter BillsWrite ChecksCreate InvoicesEnter Sales ReceiptsAdjust Quantity/Value on Hand
IntroductionSlide 2© Paradigm Publishing, Inc.6QuickBooks records information on the Item Listevery time the company:receives merchandise for resalesells merchandiseadjusts the inventory because of loss or damageThis allows you to accurately determine inventoryquantity, value, and profit on sales.QuickBooks automatically changes balance sheet andincome statement accounts based on the inventoryinformation on the Item List (Reports).
QuickBooks v. Manual AccountingSlide 1© Paradigm Publishing, Inc.7In a manual accounting system:purchases on account are recorded in a purchases journalsales on account are recorded in a sales journalIn QuickBooks, the Item List serves as an inventorysubsidiary ledger for the company.includes all items the company sellsincludes relevant information for each inventory item, such as:name/numbertypedescriptioncostsales pricerelated general ledger accounts
QuickBooks v. Manual AccountingSlide 2In QuickBooks, the windows below perform the followingfunctions:Write Checks: records cash purchases of inventoryEnter Sales Receipts: records cash sales of inventoryAdjust Quantity/Value on Hand: records changes in inventory that are not aresult of a sale or purchaseIn all instances where inventory items are purchased, sold, oradjusted, the Item List is updated to reflect the new inventoryquantity and value.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 60 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
NoProfessor
Tags
invoice

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture