Chapter 2A, Before Moving On - Sage 50 Flashcards
What types of transactions are journalized in the RECEIVABLES module?
a) Sales Invoice on credit.
b) Sales Invoice with Payment.
c) Sales Returns d) Receipts from customers for:
i) Full payment.
ii) Partial payment.
iii) Deposit for future invoice.
What is the main difference in journalizing transactions between the RECEIVABLES module & the COMPANY module?
in the General Journal both the debits and credits must be entered while only one entry is required in the Sales, Orders & Quotes Journal.
The debit or credit to Accounts Receivable is done automatically after the other account(s) (one or more accounts) are entered.
What occurs when you post journal transactions in the RECEIVABLES module?
the customer’s account is updated and the General Ledger accounts affected are updated.
Why would a business need to use more than one bank account?
a) The business deposits normal receipts from customers in a Canadian dollar account.
b) The business has a separate Canadian dollar account for credit card receipts.
c) The business receives and deposits foreign currency in a foreign funds bank account. (U.S. dollars, Euros, Chinese Yen, etc.)
Name at least two uses of the Customer Aged Detail report.
- Identify Customers that are slow in paying.
- Identify large invoices that have not been paid.
- Estimate the dollar amount of accounts that may not be collected.
Explain the concept of aging in customer accounts.
Aging is the process of sorting sales invoices by number of days from the transaction date to the current session date for each customer. Normally the dates are in ranges, e.g., 0-30 days old, 31-60 days old, etc.
An aging report in Summary or Detail can be viewed/printed. Managers will use the reports to control the collection of old (outstanding) receivable invoices.
What is the difference between a sales quote & a sales order?
-Sales Quote is a form given to a customer listing the quantity and selling prices of goods or services they require and that you can provide. -Sales Order is a form given to a customer confirming the quantity and the selling prices of goods or services that they have requested.
The default Revenue account is used for what purpose?
-default revenue account is used when recording a sales quote, order or invoice to the customer.
It will display on the first line of the customer invoice, helping the user charge the sale to the account normally used.
Other businesses have many sales accounts (e.g., Sales Fresh Flowers, Sales Dried Flowers, etc.) and the use of a default account speeds up recording of invoices and reduces errors when recording transactions.
What is a cheque payment advice?
a document normally at the bottom of a two-part cheque & stub.
The advice/stub shows details of invoices being paid by the cheque.
The advice normally shows customer name, invoice numbers and amounts, discounts taken, if any, & payments made.
What is the entry for a Sales Return?
recorded in the Sales Invoice Journal as a negative.
When recording a return of inventory (eg. product), which journal do you record the transaction in?
Inventory (DR)
HST Charged on Sales (DR)
Sales-Returns & Allowances (DR) Accounts Receivable (CR)
COGS (CR
