1. Chapter 3: Customers Chapter 3: Customers McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Customer Transactions In Chapter 3, you learn about Bellwether Garden Supply’s customers. In this chapter, you learn how Peachtree handles accounts receivable transactions with customers. 3-2

3. Peachtree Tips Peachtree Tips All work in Chapters 1 and 2, including the end-of- chapter exercises, must be completed before starting Chapter 3. If the Sales/Invoicing window or Receipts window does not show the G/L account field, see textbook page 16, steps 1a-d, for setting global options. (Global options are also shown in the front matter on pages xiii-xv.) You need to record (enter the sale to a customer), post, then print Invoice No. 101 (pages 114-124) before entering Receipts. (text pages 127-130). 3-3

4. Peachtree Tips Peachtree Tips If the GL Account field is not displayed on the Quotes, Receipts, or Sales/Invoicing windows you need to check your global settings. Refer to the steps 1-3 on pages 16-17 to make sure that the boxes in the Hide General Ledger Accounts section are unchecked (from the menu bar, Options; Global). 3-4

5. Backing Up Chapter 3 Backup Name Excel Report KB Page Nos. Chapter 3.ptb 3,725 KB 136-137 Exercise 3-2.ptb 3,722 KB 141 Exercise 3-2_Customer Ledgers.xlsx 18 KB 141 Make two backups: back up Chapter 3 data on pages 136-137; and back up Exercise 3-2 Make two backups: back up Chapter 3 data on pages 136-137; and back up Exercise 3-2 on page 140. Export Customers Ledgers to Excel on page 141. All the backups made in Part 1 (Chapters 1-8) are shown on textbook page 2. 3-5

6. Chapter 3 Glossary of Terms 3-6

7. Sales Order, p. 101 A sales order is a document containing a list of items or services that a customer wants to buy. A sales order is a request for a sale. No accounting information is updated when a sales order is posted. A sales order is a document containing a list of items or services that a customer wants to buy. A sales order is a request for a sale. No accounting information is updated when a sales order is posted. 3-7

8. Accounts Receivable module or accounts receivable system, p. 103 The Customers & Sales Navigation Center shows the flow of customer- related tasks and takes you where you need to go to perform those tasks. The Customers & Sales selection represents Peachtree’s accounts receivable module or accounts receivable system. 3-8

9. Sales discount, p. 114 A cash discount that is offered to customers for early payment of their sales invoices. For example, Bellwether Garden Supply offers Teesdale Real Estate a 5% discount for payments received within 15 days of the invoice date. In Peachtree, the discount period (number of days) and discount percentage can be changed. 3-9

10. Real-time posting, p. 123 The sample company, Bellwether Garden Supply, uses real-time posting. When real-time posting is used, the transactions that you enter are posted as you save them. On the Tasks windows, click on the Save icon to post to the general ledger. 3-10

11. Batch posting, p. 123 Journal entries that are held in temporary storage and not made part of the permanent records of the company until you decide you are satisfied with them and select Post from the icon bar. After you post, the General Ledger and all other accounting reports are updated. 3-11

12. Customer Ledgers, p. 133 Peachtree’s accounts receivable system includes the customer ledgers. Customers Ledgers lists customers with detailed transaction information including outstanding balances for each customer. 3-12

13. Credit Memos, p. 135 Credit Memos are returns to customers. Use the Credit Memos window to enter credit memos for customer returns and credits. Credit memos can be applied to any existing sales invoice. 3-13

14. Chapter 3, Internet Activity, p. 137 1 Go to the book’s website at www.mhhe.com/yacht2011. www.mhhe.com/yacht2011 2 Link to Student Edition. 3 In the Choose a Chapter field, select Chapter 3. Observe that the Quizzes and More Resources list includes additional activities. In the Course-wide Content list, link to Internet Activities; then link to In the Choose a Chapter field, select Chapter 3. Observe that the Quizzes and More Resources list includes additional activities. In the Course-wide Content list, link to Internet Activities; then link to Part 1 Internet Activities for Chapter 1-8. Select Open or Save. 4. Complete the Chapter 3 activity, AMERICAN ACCOUNTING ASSOCIATION – Chapter 3. Complete steps 1-3. 5. Using a word processing program, write a summary about the site (s) you selected. Remember to include the website address(es) of each link. Your summaries should be no more than 75 words or less than 50 words. 3-14

15. Going to the Net, p. 138 Access the Financial Accounting Standards Board website at www.fasb.org. Select the About FASB tab; then Our People. Link to Members of the FASB. www.fasb.org 1. How many board members serve on the Financial Accounting Standards Board? Do they serve part time or full time? 2. What are the qualifications for the board members? 3-15

16. Assessment Rubric, pp. 141-142 DateTransaction Navigation Center/Module Task Window Journal Dr./Cr. 3/3Bellwether Garden Supply sold one Rotary Mower - EQLW-14140 to Teesdale Real Estate, Invoice 102, $299.99; plus $18 sales tax. 3/15Received Check No. 9915 in the amount of $302.99 from Teesdale Real Estate. 3-16

17. Analysis Question, p. 142 With the Customers & Sales Navigation Center serving as the starting point to perform tasks related to Accounts Receivable, list four features of the Customer & Sales Navigation Center. 3-17