Week 10 Discussion

Please note that this discussion board will require a minimum of three posts. These consist of your initial post, your response to comments that I post to your thread, and at least one response to a classmate. If you post late in the week, it's possible that I may not be able to provide a comment to you. In that case, please be sure to provide response posts to at least two classmates.

Chapter 11: QuickBooks Service Company

Additionally, please refer to Chapter 5 in your Cengage Accounting eText, accessible from the eText link in the Course Navigation Panel to the left of your screen.

Requirement 1:

During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it:

1. An invoice for $1,875 of supplies from Kelly Co. was recorded as having been received from Kelley Co., another supplier.

2. A credit of $420 to Blackstone Company was posted as $240 in the subsidiary ledger.

3. An invoice for equipment of $4,800 was recorded as $4,000.

4. The Accounts Payable column of the purchases journal was overstated by $3,600.

How will each error come to the bookkeeper's attention, other than by chance discovery?

Requirement 2:

The following conversation took place between Durable Construction Co.'s bookkeeper, Kyle Byers, and the accounting supervisor, Sarah Nelson:

Sarah:

Kyle, I'm thinking about bringing in a new computerized accounting system to replace our manual system. I guess this means that you will need to learn how to do computerized accounting.

Kyle:

What does computerized accounting mean?

Sarah:

I'm not sure, but you'll need to prepare for this new way of doing business.

Kyle:

I'm not so sure we need a computerized system. I've been looking at some of the sample reports from the software vendor. It looks to me as if the computer will not add much to what we are already doing.

Sarah:

What do you mean?

Kyle:

Well, look at these reports. This Sales by Customer Report looks like our revenue journal, and the Deposit Detail Report looks like our cash receipts journal. Granted, the computer types them, so they look much neater than my special journals, but I don't see that we're gaining much from this change.

Sarah:

Well, surely there's more to it than nice-looking reports. I've got to believe that a computerized system will save us time and effort someplace.

Kyle:

I don't see how. We still need to key transactions into the computer. If anything, there may be more work when it's all said and done.

Do you agree with Kyle? Now that you are almost a QuickBooks expert, please explain why a computerized environment be preferred over the manual system?

Responses to Classmates:

Please provide an additional reason, not used in your initial post, as to why a computerized accounting system may be preferred over the manual system.

Response to Instructor:

Please check your thread for questions or comments from me and be sure to provide a comprehensive response, as requested.

Writing:

Please make sure that your initial post contains a properly cited reference. Please use APA style. You should cite your text as a minimum. Additionally, check your spelling and proofread your post before you hit the submit button.