Quickbooks Online Advanced Exam Section 3:

Consider the following:

• April 20 current year: Sarah bought 80 bags of mulch for $640.00
• June 12 current year: Sarah bought 75 bags of mulch for $618.75
• July 1 current year: Sarah sold 125 bags of mulch to Smith Landscaping

What is the debit entry to Cost of Goods Sold when Sarah records the sale to Smith Landscaping?

Which 3 actions are required to track inventory in QuickBooks Online?

(Select all that apply)

• Add the Service field to timesheets

• Subscribe to QuickBooks Online Plus or Advanced

• Check the setting to Track inventory quantity on hand

• Check the setting to Track expenses and items by customer

• Check the setting to Show Product/Service column on sales forms

A client wants to donate five widgets (set up as inventory items) to a charity. In the item setup, the cost is $5 and the sales price is $10. The client originally purchased 50 widgets at $6 per widget.

What is the effect on the General Ledger when this donation is recorded on a Sales Receipt?

• Debit COGS $30; credit inventory $30; debit bank account $50; credit income $50
• Debit COGS $25; credit inventory $25; debit bank account funds $50; credit income $50

• Debit COGS $25; credit inventory $25

• Debit COGS $30; credit inventory $30

• Debit Donations $30; credit inventory $30