Question

Bills / Bill Payments / Deposits / Sales For this exercise make the following assumptions: • Use Undeposited Funds for all receipts. • Cash Account Checking • Sales is the Income Account for Both Sales of Inventory and Sales of Services Create Invoice is used in QuickBooks when services are rendered on account. What account(s) is(are) debited? What account(s) is(are) credited? When Record Deposits is used in QuickBooks, What account(s) is(are) debited? What account(s) is(are) credited? When Pay Bills is used in QuickBooks, What account(s) isare) debited? What account(s) is(are) credited? When Enter Bill is used in QuickBooks, (assume bill from Accountant), What account() is(are) debited? What account(s) is(are) credited? Sales Receipt is used in QuickBooks when a sale of inventory is made for Cash. What account(s) isare) debited? What account(s) isare) credited? 6. Receive Payments is used in QuickBooks, when a payment from a customer is made on account. What account(s) is(are) debited? What account(s) is(are) credited? Create Invoice is used in QuickBooks, when a sale of inventory is made on account What account(s) is(are) debited? What account(s) is(are) credited? Sales Receipt is used in QuickBooks when services are rendered for Cash What account(s) is(are) debited? What account(s) is(are) credited?

Answer 1

S.NO	Description	Debit Account	Credit Account	Assumptions
1	Services Rendered on Account	Customer A/C	Sales A/C
2	Deposits	Bank A/C	Cash A/C	Assumed as deposit of Cash in Bank
3	Pay Bills	vendor A/C	Bank A/C
4	Enter a Bill	Expenses A/C	Accountant A/C	Accounting bill raised by the accounts consultant
5	Sale of inventory made in cash	Cash A/C	Sales A/C
6	Receive Payments	Bank A/C	Customer A/C
7	Sale of inventory made on account	Customer A/C	Sales A/C
8	Services Rendered on Cash	Cash A/C	Sales A/C

*Sales account is used for both sale of goods and sale of services