CHAPTER 10 KARA S KITCHEN

11)Enter the payment to Keep Cold Appliances.

Payment Cheque #461 Dated August 3, 2024

To Keep Cold Appliances, $53 331.20 in payment account including $512.80

discount for early payment. Reference invoices #KC-618 and #KC-884.

Entering Purchase Returns and Credit Notes

Returns on purchases also occur for a variety of reasons. For example, the goods may be

damaged or the wrong items or quantity may have been shipped. Purchase returns are

entered in the same way as sales returns or credits by entering the return as a credit

note. The supplier, date, payment method and terms must be the same as the original

purchase. You cannot change the default asset account for inventory purchases or

returns.

A credit note is a reversed purchase entry.

The inventory asset account and GST Paid on Purchases will be credited to

decrease the inventory and restore the tax liability. Accounts Payable will be debited to

reduce the amount we owe to the supplier. Any applicable freight charges, also entered

as a positive amount, will also be reversed.

If the credit is not a return of inventory, enter the amount as we did for the Sales

Credit above and choose an appropriate account

SESSION DATE AUGUST 14, 2024

Memo #4 Dated August 9, 2024

Create new inventory item:

Min Regular Preferred Linked Accounts

Number Description Unit Level Price Price Asset Revenue COGS

F080 Refrigerator: Fr. door, no freezer, 36 cu ft each 2 $3 200 (2 900) 1540 4020 5060

Purchase Invoice #CI-6891 Dated August 9, 2024

From Chillers Inc.

5 F030 Refrigerator: Fr. door, drawer freezer, 32 cu ft $13 375.00

5 F040 Refrigerator: Fr. door, shelf freezer, 32 cu ft 19 000.00

3 F060 Refrigerator: Fr. door, built-in, 36 cu ft 17 640.00

3 F080 Refrigerator: Fr. door, no freezer, 36 cu ft 6 000.00

Freight 200.00

GST 2 810.75

Total $59 025.75

Terms: 2/10, n/30.

Memo #5 Dated August 9, 2024

Edit the selling price for item F040 Refrigerator: Fr. door, shelf freezer, 32 cu ft to

reflect the increase in the purchase price. The new regular and web price will be

$5 300 and the preferred price will be $4 900.

22) Cash Purchase Invoice #BDS-9033 Dated August 14, 2024

From Brandon Daily Spectator (use Quick Add for new vendor), $1 200 plus $60

GST and $84 RST for ads to run for 12 weeks. Purchase invoice total $1 344 paid

in full by cheque #462. Create new Group account: 1290 Prepaid Advertising