Chapter 3: Sales and Income Teaching Tips 25 Chapter 3 Sales and Income Topics is chapter covers the following topics: • e Sales and Income Workflow • Setting Up Customers and Jobs • Recording Sales Transactions • Receiving Payments from Customers • Making Bank Deposits • Using Income Tracker Teaching Tips In this chapter, students learn about the sales and income workflow and how to track income from initially recording sales transactions to depositing money in the bank. e steps that comprise the sales and income workflow are a crucial concept for students to understand when working with invoices. e steps are: 1. Invoicing 2. Receiving payments 3. Making deposits ese steps are the key to being able to track accounts receivable, sales, customer balances, and income. Students learn several ways to record sales and income-related transactions, such as sales receipts, invoices, receiving payments, and depositing funds. It’s important to record deposits in a bank account in the same way that the bank posts the deposits. If the deposits don’t match, performing a bank reconciliation in QuickBooks can be difficult.
Transcript
Chapter 3: Sales and Income
Teaching Tips
25
Chapter 3
Sales and Income
TopicsThis chapter covers the following topics:
• The Sales and Income Workflow
• Setting Up Customers and Jobs
• Recording Sales Transactions
• Receiving Payments from Customers
• Making Bank Deposits
• Using Income Tracker
Teaching TipsIn this chapter, students learn about the sales and income workflow and how to track income from initially recording sales transactions to depositing money in the bank. The steps that comprise the sales and income workflow are a crucial concept for students to understand when working with invoices.
The steps are:
1. Invoicing
2. Receiving payments
3. Making deposits
These steps are the key to being able to track accounts receivable, sales, customer balances, and income.
Students learn several ways to record sales and income-related transactions, such as sales receipts, invoices, receiving payments, and depositing funds. It’s important to record deposits in a bank account in the same way that the bank posts the deposits. If the deposits don’t match, performing a bank reconciliation in QuickBooks can be difficult.
Answers to Review Questions and Exercises
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Answers to Review Questions and ExercisesAnswers are bolded:
Review QuestionsSelect the best answer(s) for each of the following:
1. Which sales form(s) should you use if a customer doesn’t pay its balance in full?
a) Invoice
b) Sales receipt
c) Statement
d) All of the above
2. What does the Customer Name field do?
a) It is an identifier that appears in the Customer & Jobs list.
b) It appears in the Bill To field in an invoice.
c) It is the customer’s legal company name.
d) It does the same things as the Company Name field.
3. Which statement(s) is true?
a) Invoices decrease the Accounts Receivable balance.
b) Sales receipts can handle payments in full at the time of a sale.
c) Sales Receipts increase the Accounts Receivable balance.
d) Sales receipts can’t handle sales tax.
4. Settings such as Terms in a customer’s record:
a) Can be changed in a sales form, but not in the customer record.
b) Are filled in automatically when you create a sales receipt or invoice.
c) Can be changed in a sales form and updated in the customer record.
d) Appear at the top of the appropriate drop-down lists when you display that list in a sales form.
5. A customer sent a check as payment for an invoice. What should you do to record this payment?
a) On the Home Page, click Invoice to open the invoice, and then add a Payment item to the invoice, and save the transaction.
b) Create a credit memo with the payment and then apply the credit to the invoice.
c) On the Home Page, click Receive Payments to receive the payment.
d) On the Home Page, click Record Deposits to deposit the payment.
Chapter 3: Sales and Income
Sales and Income Exercise 1
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Sales and Income Exercise 1
Restore the sample file, sample_product-based business 2015 (Portable).QBM. (Or, if you are using QuickBooks 2014, restore sample_product-based business 2014 (Portable).QBM.)
1. Create a sales receipt using data from the following table. You can use Quick Add to create the customer. Save changes to lists to the customer record.
Figure 3-1 Sales Receipt
Sales and Income Exercise 1
Chapter 3: Sales and Income 28
2. Record an invoice using data from the following table. Print the invoice on blank paper. Save changes to lists to the customer record.
Figure 3-2 Invoice
Chapter 3: Sales and Income
Sales and Income Exercise 1
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3. Record a payment dated 2/15/2019 for the full amount of Berilyn Johnson’s invoice (check num-ber 3195) and apply it to invoice 2019-101.
4. Deposit all transactions from the Undeposited Funds account into the Checking account on 2/18/2019. Print the Deposit Slip and the Deposit Summary report on blank paper.
Figure 3-3 Receive Payments window
Figure 3-4 Deposit Slip and Summary report
Sales and Income Exercise 2 (Advanced)
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Sales and Income Exercise 2 (Advanced)Restore the sample file, sample_product-based business 2015 (Portable).QBM. (Or, if you are using QuickBooks 2014, restore sample_product-based business 2014 (Portable).QBM.)
1. Create a sales receipt using data from the following table. You can use Quick Add or the New Customer window to create the customer. Save changes to lists to the customer record.
Figure 3-5 Sales Receipt
Chapter 3: Sales and Income
Sales and Income Exercise 2 (Advanced)
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2. Record an invoice using data from the following table. Print the invoice on blank paper. Save changes to lists to the customer record.
Figure 3-6 Invoice
Sales and Income Exercise 2 (Advanced)
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3. Record another invoice using data from the following table. Print the invoice on blank paper. Save changes to lists to the customer record.
Figure 3-7 Invoice
Chapter 3: Sales and Income
Sales and Income Exercise 2 (Advanced)
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4. Record a payment dated 2/20/2019 for the full amount of Joan Barstow’s invoice (paid with Visa #4300-1111-2222-3333, expiration 7/2020) and apply it to invoice 2019-102.
5. Record a check payment from RM Abrams Construction (number 11321) dated 2/21/2019 for $5,000 and apply it to invoice 2019-101.
Figure 3-8 Receive Payments window
Sales and Income Exercise 2 (Advanced)
Chapter 3: Sales and Income 34
6. Deposit all transactions from the Undeposited Funds account into the Checking account on 2/25/2019.
a. Deposit cash and check payments together. Memo: Deposit checks. Print the Deposit Slip and the Deposit Summary report on blank paper.
b. Deposit the Visa payment separately. Memo: deposit Visa.
Figure 3-11 Deposit Slip and Summary report
Figure 3-9 Receive Payments window
Chapter 3: Sales and Income
Sales and Income Exercise 2 (Advanced)
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c. Record a 2% bankcard fee on the credit card deposit. (Use QuickMath in the Amount cell to calculate the fee.) Use Account 60600 Bank Service Charges, Payment Method — Visa, Memo — 2% bankcard fee. (The amount should be negative.) Print Deposit Summary only on blank paper.
