Chapter 4 Vendors and Inventory Copyright ©2017 by McGraw-Hill Education. All rights reserved. 1 of 13.

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Chapter 4 Vendors and Inventory Copyright ©2017 by McGraw-Hill Education. All rights reserved. 1 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Chapter 4 The Vendors page is where the company keeps track of the suppliers you work with. Vendors are people or companies that you pay money to, such as a store, utility, landlord, or subcontractors who work for you. An inventory item is a product that is purchased from vendors for sales to customers. 2 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. QBO Tips QBO Tips To make sure you are starting in the correct place in the data, display the October 30, 20XX Trial Balance. The Vendor Contact List includes vendors that are paid immediately with a check, or paid later for purchases on account. 3 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Files Saved in Chapter 4 The chart shows the PDF and Excel files saved in Chapter 4. Files can be saved to a USB flash drive, hard-drive location, network, or external media. To identify your file, you could add your name at the end of the suggested file name. PDF & ExcelPage Chapter 4_October 31_Trial Balance90 Chapter 4_Vendor Contact List106 Chapter 4_Products and Services List115 Chapter 4_Journal118 Chapter 4_Transaction Detail by Account119 Chapter 4_Trial Balance121 Chapter 4_Inventory Valuation Summary121 Chapter 4_Vendor Balance Summary122 Chapter 4_AP Aging Summary123 Chapter 4_Profit & Loss124 4 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Files Saved in Chapter 4 (concluded) PDF & ExcelPage Chapter 4_Balance Sheet126 Chapter 4_Statement of Cash Flows126 Exercise 4-2_Vendor Contact List133 Exercise 4-2_Product and Services List133 Exercise 4-2_Journal133 Exercise 4-2_Transaction Detail by Account133 Exercise 4-2_Trial Balance133 Exercise 4-2_Inventory Valuation Summary133 Exercise 4-2_Vendor Balance Summary133 Exercise 4-2_AP Aging Summary133 Exercise 4-2_Profit & Loss133 Exercise 4-2_Balance Sheet133 Exercise 4-2_Statement of Cash Flows133 5 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Account Reconciliation  Cloud_Ware receives a bank statement every month for their account, Account 101 Checking. The bank statement shows which checks, ATMs, and deposits cleared the bank.  QBO’s reconcile feature allows you to reconcile the bank statement.  Bank reconciliation is the process of bringing the balance of the bank statement and the balance of the checking account into agreement. 6 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Vendor Contact List The four vendors added in Chapter 4 show the vendor name, phone numbers, full name, and address. The other vendors were added in Chapter 3. 7 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Inventory Products and Services To add inventory, go to > Products and Services. 8 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Inventory Valuation Summary, Vendor Balance Summary and A/P Aging Summary The A/P Aging Summary total matches the balances of Account 115 Merchandise Inventory and Account 201 Accounts Payable. 9 of 13

Online Learning Center  Go online to for additional resources. Link to Student Edition, then select Chapter 4. The Online Learning Center includes: o Narrated PowerPoints. o Going to the Net exercises. o Videos. o Multiple-Choice Questions. o True or False Questions. o Analysis Questions. o Glossary of Terms. Copyright ©2017 by McGraw-Hill Education. All rights reserved. 10 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. YouTube Video Watch Bills and Expense Reports in QuickBooks.Bills and Expense Reports in QuickBooks Watch a video of interest to you on RadioFreeQB.RadioFreeQB 11 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Going to the Net Go to the QuickBooks Learn & Support website.QuickBooks Learn & Support Type a Search word; for example Inventory.Inventory Link to articles of interest to you. 12 of 13

Copyright ©2017 by McGraw-Hill Education. All rights reserved. Analysis Questions What are vendors? What is Accounts Payable and how do you verify its balance? Why is the balance in Merchandise Inventory different than the balance in Accounts Payable? Include the account balances in your answer. Explain. 13 of 13