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?

• 1000

• 1011.25

• 1015.12

• 1031.25

Question 2

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

Question 3

Which 3 statements are true regarding Product Categories?

(Select all that apply)

• A product category can be assigned through Bank Feeds

• A transaction can be posted to a product category

• The Products and Services list can be filtered by product category

• An existing category or new product category can be specified when adding a product/service item

• Entering the name of a product category in a purchase or sales transaction produces a drop-down list of products/services that are in that category

Review theLaura's Landscaping scenarioand answer the question below. Answer must be entered without dollar signs or commas, and must include two decimals (for example, xxxx.xx).

Rounding up to the nearest cent, what is the ending inventory value for Ornamental Trees and Decorative Spotlights as of October 31 of the current year?

Scenario:

Laura's Landscaping The following entries were the only entries recorded in Laura's Landscaping for the month of October:

October 15 - current year: Purchase of 10 Decorative Spotlights for $10.00 each and 10 Ornamental Trees for $125.00 each.

October 20 - current year: Laura discovers that 6 of the Decorative Spotlights are defective and sends them back to the vendor for credit.

October 25 - current year: Purchase of 3 Decorative Spotlights for $10.50 each and 10 Ornamental Trees for $110.00 each.

October 27 - current year: Laura's employee, Joe, drops an Ornamental Tree off the truck while driving to the worksite and the tree is damaged beyond repair. Laura records an inventory adjustment to reduce inventory by the 1 item.

October 28 - current year: Laura creates an invoice for Francie's Fitness Center for the following items: Item Quantity Rate Amount Ornamental Trees 12 $195.00 $2,340.00 Decorative Spotlights 6 $19.95 $119.70 Labor 4 $75.00 $300.00

Question 5

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