1. Chapter 13: Customers & Sales McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Customers & Sales In Chapter 12, you learned how to use Peachtree’s Purchases/Receive Inventory and Payments features. Now that you have purchased merchandise from vendors, you are ready to sell that merchandise. To do that, you need to learn how to use Peachtree’s Customers & Sales Navigation Center. Before using the Sales/Invoicing window, you need to set up customer defaults, sales tax information, and customer maintenance information. After you set these defaults, Peachtree will use this information when you record a sale. 13-2

3. Peachtree’s Accounts Receivable System, p. 504 Record, then print a sales invoice. The customer sends a check to pay for the credit sale. Select the invoice that applies to the customer's check, then select the pay box. 13-3

4. The Customers & Sales Navigation Center On the Customers & Sales Navigation Center, Peachtree illustrates the accounts receivable system. 13-4

5. Peachtree Tips You must complete Chapter 12 before you start Chapter 13. If the general ledger account (GL account field) is not displayed on the Sales/Invoicing window, check the global options. In the Hide General Ledger Accounts section, all boxes must be unchecked (refer to pages xiii-xiv, Setting Global Options). 13-5

6. Backing Up Chapter 13 Backup Name (.ptb) Excel (.xlsx) Kilobytes Page Nos. Chapter 13 Begin.ptb 1,428 KB 516 Chapter 13.ptb 1,473 KB 544 Chapter 13_SJ_CRJ_CL_GLTB.xlsx 24 KB 545 Exercise 13-1.ptb 1,365 KB 551 Exercise 13-2.ptb 1,372 KB 552 Exercise 13-2_SJ_CRJ_CL_GLTB.xlsx 23 KB 552 The chart below shows the size of the backups made in Chapter 13. The textbook steps show you how to back up to Peachtree’s default hard drive location at C:\Sage\Peachtree\Company\[shortened company name]. You can also specify a hard drive location, or back up to external media such as a CD-R or USB media. The chart for the size of all the backups made in Chapter 13 is on page 432. 13-6

7. Glossary of Terms Chapter 13

8. Accounts receivable, p. 503 Money that is owed by customers to the business. 13-8

9. Accounts Receivable transactions, p. 503 Credit transactions from customers. When Samantha's Service Merchandise sells merchandise on account to customers, the transactions are known as accounts receivable transactions. 13-9

10. Invoice, p. 504 A bill that shows an itemized list of goods shipped or services rendered, stating quantities, prices, fees, and shipping charges. 13-10

11. Sales journal, p. 516 Sales on account are recorded in the sales journal. In Peachtree, all the information about a sale is recorded in the Sales/Invoicing window. Then, Peachtree takes the necessary information from this window and automatically journalizes the transaction in the sales journal. 13-11

12. Cash Receipts Journal, p. 516 A journal used to record all inflows of cash. Peachtree takes the necessary information from the Receipts window and automatically journalizes the transactions in the cash receipts journal. 13-12

13. Accounts receivable ledger, p. 517 The accounts receivable ledger shows the account activity for each customer. In Peachtree, this is called the customer ledger. 13-13

14. Service invoice, p. 524 An alternative to the standard invoice. Use it when you want to create an invoice without inventory items. Samantha's Service Merchandise sells and repairs household items. When repairs are done, a service invoice is used. 13-14

15. 1 Go to the book’s website at www.mhhe.com/yacht2011. www.mhhe.com/yacht2011 2 Link to Student Edition. 3In the Choose a Chapter field, select Chapter 13. Observe that the Quizzes and More Resources list includes additional activities. In the Course-wide Content list, link Internet Activities; then link to Part 3 Internet Activities for Chapter 12-15. Select Open or Save. 4 Complete the WebCPA–Tools and Resources for the Electronic Accountant exercise. Read steps 1–3. 5 Follow the steps shown on the book’s website to complete this Internet activity. 6 Using a word processing program, write a brief summary of what you find. Include all appropriate website addresses. Internet Activity, p. 545 13-15

16. Going to the Net, p. 546 Access the Business Owner’s Toolkit website at www.toolkit.com/small_business_guide/sbg. aspx?nid=P06_1430. Read the accounts receivable page, and then answer the following questions. www.toolkit.com/small_business_guide/sbg. aspx?nid=P06_1430 www.toolkit.com/small_business_guide/sbg. aspx?nid=P06_1430 What is the common abbreviation for accounts receivable? What is the control account for customer sales on account? How is the ending accounts receivable total computed? 13-16

17. Assessment Rubric, p. 553 DateTransaction Navigation Center/Module Task Window Journal Dr./Cr. 1/6Sold five tool kits on account to Abe Carter, Invoice 101 1/10Abe Carter returned one of the tool kits purchased on 1/6, Invoice No. 101, CM101. Mr. Carter also paid the balance of Invoice 101. 13-17

18. Analysis Question, page 553 What is the balance in the Accounts Receivable account, Samantha’s Service Merchandise? Why? 13-18