Name Date Class

QuickBooks Guide
Step-by-Step Instructions
Problem 14-7 Recording Sales and Cash Receipts
INSTRUCTIONS
Begin a Session
Step 1 Restore the Problem 14-7.QBB file.
Work the Accounting Problem
Step 2 Review the transactions listed in your textbook and group them by
type—sales on account, credit memos, cash/bankcard sales, and other
cash receipts. Use 2015 as the year.
Step 3 Use the Create Invoices option to record the sales on account
transactions.

QuickBooks Guide
4)0 Refer to the instructions for Problem 14-5 if you need help
entering the transactions for this problem.

When you enter the January 12 transaction for the merchandise sold
on account to FastForward Productons, notice that the credit terms
2/10, Net 30 Days appears in the Terms field. The terms for Fast Forward
Productions have already been set up for you in the problem set.
Step 4 Enter the credit memos issued by Shutterbug Cameras in January. Use
the Create Credit Memos/Refunds option.

4)0 Remember to apply the credit memo to a specific invoice.

Step 5 Enter the cash receipts transactions for the sale of supplies to Betty’s
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Boutique on January 3.
The process for recording a cash receipt for the sale of an asset
(e.g., supplies or office equipment) requires you to use the Make
General Journal Entries. Follow the steps listed below to record
the transaction.
January 3, Received $50 in cash from the sale of supplies to
Betty’s Boutique, Receipt 201.
Choose Make General Journal Entries from the Company menu.

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• Type 01/03/2015 in the Date field.

• Type Receipt 201 in the Entry No. field.
• Move to the Account field and enter Cash in Bank.
• Move to the Debit field and type 50.
• Tab to the Memo field and type Sale of supplies to
Betty’s Boutique.
• Move to the Account field and enter Supplies.
• Move to the Credit field and type 50.
• Tab to the Memo field and type Sale of supplies to
Betty’s Boutique.
• Proof the information you just recorded. Verify that you entered
the correct date, accounts, amount, and description.
• Click Save & Close to record the transaction.
Step 6 Record the remaining cash receipts (cash sales, bankcard sales, and
receipts on account) using the Enter Sales Receipts and


Receive Payment options.
To record a cash receipt on account involving a discount, $/9/5(!6%
follow the steps you already learned to record the transaction. !15%34)/.
QuickBooks Guide

After you mark the invoice as “Paid,” click the Discount & Q. How do you filter the
Credits button. Type the amount in the Amount of Discount General Ledger report by
field and select Sales Discount in the Discount Account field account number?
and click Done. A. To filter the General
Prepare a Report and Proof Your Work Ledger report by account
number, click the Modify
Step 7 Print a Journal report. Report button and select the
Step 8 Proof your work. Update the transactions and print a revised Filter tab. Choose Account in
report if you identify any errors. the Filter list. In the Account
Analyze Your Work drop down list choose
Selected Accounts and then
Step 9 Print a General Ledger report for account 215 Sales Tax select 215 Sales Tax Payable.
Payable and complete the Analyze activity. Only the transactions in this
account will appear.
End the Session
Step 10 It is recommended that you back up you work for this session.

Copyright © McGraw-Hill Education. All rights reserved.

How do you set up customer payment terms for a com-
pany? Can you set up different payment terms for one or
two customers? If so, explain how. Use a separate sheet of
paper to record your answer.

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FAQs
What steps are required to correct a sales invoice with the wrong Customer:Job
or sale amount?
If you enter the wrong information for a sales invoice, you can correct it even if
you have already saved the transaction. Choose the Create Invoices option and
click the Previous button to retrieve the invoice in question. After locating the
invoice make the necessary corrections and then save the updated transaction.

What steps are required to correct a receipt entry?

You can change any information on a cash receipt even after you have closed the
current period. To make a change, choose the Enter Sales Receipts option. Click
the Previous button to retrieve the receipt you want to update. Make the neces-
sary corrections and then save the updated transaction. QuickBooks automatically
applies the corrections.

QuickBooks Guide
Is it required to use the <Predefined> Intuit Service Invoice in the Create
Invoices window?
No. You can use any of QuickBooks predefined invoices or you have the ability to
customize your own.
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