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1. Enable inventory tracking. Now that the company is using inventory, the workflow will be as follows: the item is purchased and recorded in the
Enable inventory tracking. Now that the company is using inventory, the workflow will be as follows: the
item is purchased and recorded in the inventory account. When a sale is made, the item is removed from
inventory and charged to cost of goods sold.
Create the following products using the following setup:
a Sales Account: Sales
b Inventory Account: Inventory Asset
c Cost Account: Cost of Goods Sold
d Create the following items:
Name: Turf Edger
Sales Description: Turf
Edger Sales Price: $
Tax: Taxable when sold
Purchase Price:
Tax: Not taxable when purchased for resale items purchased for resale are not
taxable for most jurisdictions
Reorder Point:
Initial Quantity on Hand:
Name: Gas Hedge Trimmer
Sales Description: Gas Hedge Trimmer
Sales Price: $
Tax: Taxable when sold
Purchase Price: $
Tax: Not taxable when purchased for resale
Reorder Point:
Initial Quantity on Hand:
Name: Hand Garden Trowel
Sales Description: Hand Garden Trowel
Sales Price: $
Tax: Taxable when
sold
Purchase Price: $
Tax: Not taxable when purchased for resale
Reorder Point:
Initial Quantity on Hand:
Name: Pruner Lopper
Sales Description: Pruner Lopper
Sales Price: $
Tax: Taxable when sold
Purchase Price: $
Tax: Not taxable when purchased for resale
Reorder Point:
Initial Quantity on Hand :
Name: Evergreen Fertilizer
Sales Description: KG Evergreen Fertilizer
Sales Price: $
Tax: Taxable when sold
Purchase Price: $
Tax: Not taxable when purchased for resale
Reorder Point:
Initial Quantity on Hand:
Create a Purchase order for Johnson Supplies for the st of this month. Order the
following supplies NOTE: You may have to enable Purchase Orders prior to this
exercise:
Turf Edger:
Evergreen Fertilizer: Bags
Create a Purchase Order for a new
supplier: Hanson Garden Supplies
Speers Road
Oakville, ON LL X
Order the following items:
Pruner Lopper
Hand Garden Trowel
Gas Hedge Trimmer
Jon wants to see whats on purchase orders as of today. Create and print the Open
Purchase Order report
Receive against the PO for Johnson Supplies. Receive it in full on the th of this
month. Use the bill form to receive the purchase order.
Receive against the PO for Hanson Garden Supplies. You received all the Pruner
Loppers and Hand Garden Trowels. When comparing the invoice to the packing
slip, you see that you only received of the Gas Hedge Trimmers.
Pay the bills for Johnson Supplies and Hanson Garden Supplies in full on the
last day of this month.
Alice notices customers are buying several garden tools at one time. She has the idea
to bundle several tools together as a Garden Tool Starter Kit. Create the Garden Tool
Starter Kit with the following items and quantities:
a Hand Garden Trowel
b Pruner Lopper
c Turf Edger
Sales Description: Garden Tool Starter Kit. The sales price of the kit will be the sum of all of the individual sales
prices less
Create an invoice for Kelly Buss on the th of this month. Sell one Garden Tool Starter Kit.
Receive the payment from Kelly Buss on the th of this month and deposit the
amount directly to the TCU chequing account. She paid with cheque #
There was a heavy rainstorm at the Green Tree Landscape yard and the roof on the
inventory shed was leaking. As a result, Gas Hedge Trimmers were damaged. They
cannot be sold and will need to be disposed of Jane has asked you to write off the
inventory as of the last day of this month. Make the inventory adjustment to account
for the damaged goods. Jane asked you to use an Inventory WriteOff expense
account Tip: you may have to use the Chart of Accounts to create a new account
Alice and Jon want to know the value of the inventory. Create and print the Inventory
Valuation Detail report for them.
Alice wants to count the inventory each month. Shed like a list of inventory parts as
of today. Print the appropriate report for her.
After two busy months of business, Jon and Alice need to review their business
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Here is a detailed guide on how to complete the tasks outlined Task 1 Enable Inventory Tracking 1 Open your accounting software eg QuickBooks Xero etc 2 Go to the settings or preferences section 3 Fin...Get Instant Access to Expert-Tailored Solutions
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Step: 2
Step: 3
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