Chapter 2B, Before Moving On - Sage 50 Flashcards
What is a deposit?
A deposit is money received from a customer that is made in advance of the goods being sent or an invoice being issued.
In what circumstances would a business require a deposit?
Many companies request a deposit or prepayment as a sign of good faith that the customer intends to meet the terms of the contract and pay their bills.
Used for new clients, or when a NSF cheque has been received from the customer.
Where do you record the deposit?
You record the Deposit/Prepayment in the Sales Orders Journal as part of a Sales Order.
Which of the following business events does not need a negative amount to record the transaction?
A) A retail sale invoice for a pair of sunglasses was issued for $172.89 ($153.00 plus taxes) and should have been issued for the correct amount of $152.55 (135.00 plus taxes).
B) Write off of a customer balance due to the bankruptcy of the customer.
C) Record a sale with HST to a customer.
D) Record the return of an unopened USB drive by a customer.
Item C does not require a negative amount to record the transaction
How would you record a senior discount?
- in the Sales Journal - Sales Invoice.
1. You could record the discount by using the Disc % column for the Senior’s Discount. 2. You could record the discount to a separate Senior’s Discount account.
Give the journal entry(ies) for a $210.00 NSF cheque for which the bank has added bank charges of $15.00 (no HST) to your company bank statement.
Indicate the Sage 50 module in which the entry is made.
is made in the RECEIVABLES module in the Sales Journal -Sales Invoice.
The original amount of the NSF cheque and any bank service charges is added to the amount the customer owes the business.
The journal entry is:
Accounts Receivable 225.00 (DR)
Cash 225.00 (CR)
What is a customer account write-off?
In what circumstances would a business write off a customer account?
-is used to remove a customer’s invoice or partial balance of an invoice that will not be collected. Normally, a write-off occurs only when it is certain that the amount is uncollectible. Usually a manager approval is required before an account is written off.
A customer wants to pay an outstanding invoice by credit card in the amount of $339.00 (includes $39.00 HST).
Which journal would you use to record it & what entry is made in the accounting records, assuming the bank charges 3% for processing credit cards.
Receipts Journal. The entry would be:
Cash 328.83 (DR) Credit card charges 10.17 (DR) Accounts Receivable 339.00 (CR)
Your manager would like you to prepare a Gross Margin Income Statement.
What is it?
an Income statement that breaks down the Expenses into two categories: COGS & Expenses.
The statement subtracts the COGS from Revenue to show the Gross Margin.
The Gross Margin Income Statement can also be called the Gross Profit Income Statement.
How do you record a quantity discount for a good customer?
A) In the Customer Receivable Ledger, Options tab, set up a Standard Discount amount.
B) In the Sales Quotes, Sales Orders, or Sales Invoices window, use the Disc % column.
