W23-QBO- Case Study - Wk 4 - Class Practice C3 C7

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George Brown College Canada *

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FIN2002

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Accounting

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Apr 3, 2024

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Week 4 - QuickBooks Lesson 3 & 7 Case Study 3: Da Silva Design This case study is to develop your ability to complete the sales process (workflow). This includes setting up new customer, service item, invoicing, credit memo, receiving payments, and depositing funds from your customers. Objectives: After completing this case study activity, you will be able to: Create new customer Add new service item and inventory product items. Record the delayed charge (sales order) and convert it to an invoice. Record credit memo Create an estimate and convert it to an invoice. Enter payment received from customer. Instruction: 1. Login to QuickBooks online. 2. Read the following case study. 3. Complete all the Case Study Instructions listed below in the Da Silva Design company file. 4. Upon completion, notify the instructor by submitting your QuickBooks login information to D2L Brightspace, Case Studies, Case Study 3 January 5th Record sales order (Delayed Charge) and add new service and product inventory items A new customer, InterContinental Hotel Group ( not a sub-customer ) send you a sales order (Delayed Charge) for Head Office (Category) – 30 hours of Interior Design Consultation (Sales/Price rate $250 per hour) and 50 Designer Vases (accessories) (Sales $100, Cost $50). At January 1 st , there were 200 designer vases in inventory with re-order point of 100. The services will be provided by Da silva Design employees. These services will take place on Jan 8 th . Add new customer InterContinental Hotel Group billing and shipping address is 1 rue des Carrieres, Quebec City, Quebec, G1R 4P5. The contact is Thomas Aubert whose phone number is 418-692-3861, email taubert@intercontinental.com and website www.intercontinental.com/taubert. InterContinental Hotel Group was given a $65,000 credit limit (notes), payment method is cheque, with payment terms of ‘Net 30’. They also negotiated a 15% ‘special price’ discount (price level decrease) for their order and will be charged HST (taxes). January 10th Create invoice for customer
The invoice was created and emailed to InterContinental Hotel Group The 30 designer vases were delivered to the customer. January 12 th Create customer credit memo InterContinental Hotel Group return two designer vases. They were broken in transit. A credit memo was emailed the same day to the customer. January 17 th Create an estimate InterContinental Hotel Group had requested on estimate for interior designing their 1,000 suites and providing handmade red oak (straight grain) furniture. Rico DaSilva decided that they would need 3 red oak packs per suite (3,000 packs), labour would be 10 hours per suite (10,000 hours) and 150 hours of Interior Design Consultation. At January 1 st , there were 10,000 pack (25 board feet) red oak lumber in inventory with re-order point of 2,000, and category is Furniture. The sale price is $500 (pack) and cost $250 (pack). The Labour - Furniture sales price is $160 per hour, cost is $80 (service provided by Hughes Supplies Depot). January 25 th Turn the estimate into an invoice InterContinental Hotel Group accepted the estimate. An invoice was sent out for 1/3 of the estimate. January 31 st Record customer payment receive and deposit A cheque was received from InterContinental Hotel Group for the total amount owing for both invoices. It was deposited the same day. The accountant recorded the payment received and debited it to the Royal Bank - Chequing account. Case Study Instructions: 1. Setup the new customer InterContinental Hotel Group 2. Setup the new service item and inventory product item. 3. Setup price rule for 15% Special price discount. 4. Create the ‘Delayed Charges’ form for the sales order. 5. Record the Invoice from the Delayed Charges. 6. Record the credit memo for the designer vases that were broken in transit. 7. Setup the estimate feature and create the estimate and invoice for InterContinental Hotel Group. 8. Record the payment received (total amount owing) from InterContinental Hotel Group
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