2. Chapter 13: Customers & Sales Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

3. 2 of 22 Customers & Sales In Chapter 12, you learned how to use Sage 50’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 use Sage 50’s Customers & Sales Navigation Center. Before using the Sales/Invoicing and Receipts windows, you set up customer defaults, sales tax information, and customer maintenance information. After these defaults are set up, Sage 50 uses that information when a sale is recorded.

4. 3 of 22 Sage 50’s Accounts Receivable System, p. 464 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.

5. 4 of 22 The Customers & Sales Navigation Center On the Customers & Sales Navigation Center, Sage 50 illustrates the accounts receivable system.

6. 5 of 22 Sage 50 Tips You must complete Chapter 12 before you start Chapter 13. If necessary, restore the Chapter 12.ptb file made on page 449. 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 xvi-xvii, Setting Global Options).

7. 6 of 22 Backing Up and Saving Files Chapter 13, pp. 394-396 Backup Name (.ptb) Excel (.xlsx) Kilobytes Page Nos. Chapter 13 Begin.ptb 1,024 KB 476 Chapter 13.ptb 1,041 KB 504 Chapter 13_SJ_CRJ_CL_GLTB.xlsx 24 KB 504 Exercise 13-1.ptb 966 KB 507 Exercise 13-2.ptb 983 KB 509 Exercise_SJ_CRJ_CL_GLTB.xlsx 23 KB 509 Exercise 13-2.Sales Journal.pdf 51 KB 509 Exercise 13-2_Cash Receipts Journal.pdf 50 KB 509 Exercise 13-2_Customer Ledgers 50 KB 509 Exercise 13-2_General Ledger Trial Balance.pdf 51 KB 509

8. 7 of 22 Glossary of Terms Chapter 13

9. 8 of 22 Accounts receivable, p. 463 Money that is owed by customers to the business.

10. 9 of 22 Accounts Receivable transactions, p. 463 Credit transactions from customers. When Nancy's Service Merchandise sells merchandise on account to customers, the transactions are known as accounts receivable transactions.

11. 10 of 22 Invoice, p. 464 A bill that shows an itemized list of goods shipped or services rendered, stating quantities, prices, fees, and shipping charges.

12. 11 of 22 Sales journal, p. 476 Sales on account are recorded in the sales journal. In Sage 50, all the information about a sale is recorded in the Sales/Invoicing window. Then, Sage 50 takes the necessary information from this window and automatically journalizes the transaction in the sales journal.

13. Sales/Invoicing window, p. 478 Sales Journal 12 of 22

14. 13 of 22 Cash Receipts Journal, p. 476 A journal used to record all inflows of cash. Sage 50 takes the necessary information from the Receipts window and automatically journalizes the transactions in the cash receipts journal.

15. Receipts window, p. 489 Cash Receipts Journal 14 of 22

16. 15 of 22 Accounts receivable ledger, p. 476 The accounts receivable ledger shows the account activity for each customer. In Sage 50, this is called the customer ledger.

17. Customer Ledgers, p. 502 Accounts Receivable Ledger 16 of 22

18. 17 of 22 Service invoice, p. 484 An alternative to the standard invoice. Use it when you want to create an invoice without inventory items. Nancy's Service Merchandise sells and repairs household items. When repairs are done, a service invoice is used.

19. Sales/Invoicing window, p. 485 Service Invoice 18 of 22

20. Online Learning Center  Go online to http://www.mhhe.com/yacht2013 for additional resources. Link to Student Edition, select Chapter 13. http://www.mhhe.com/yacht2013 o Interactive Testing o Glossary of Terms o Feature Quizzes o Two Videos: Demonstrations of sales invoice and customer payments. o Narrated PowerPoints o Assessment Rubrics o Going to the Net o QA Templates 19 of 22

21. 20 of 22 Going to the Net Access the Business Owner’s Toolkit website at http://www.bizfilings.com/toolkit/sbg/finance/book keeping/accounting-for-cash-transactions.aspx. Scroll down to Understanding Accounts Receivable (or press + ). http://www.bizfilings.com/toolkit/sbg/finance/book keeping/accounting-for-cash-transactions.aspx http://www.bizfilings.com/toolkit/sbg/finance/book keeping/accounting-for-cash-transactions.aspx 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?

22. Analysis Question What is the balance in the Accounts Receivable account, Nancy’s Service Merchandise? Why? 21 of 22

23. Assessment Rubric 22 of 22 DateTransaction Navigation Center/Module Task Window Journal Dr./Cr. 1/6Sold five tool kits on account to Aaron Costa, Invoice 101 1/10Aaron Costa returned one of the tool kits purchased on 1/6, Invoice No. 101, CM101. Mr. Costa also paid the balance of Invoice 101.