PC.3.A.12 - Adjusting for Donated Inventory | Scribe

    PC.3.A.12 - Adjusting for Donated Inventory

    • 24 steps

    ProAdvisor Challenge

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    This exercise is a ProAdvisor Challenge provided by Intuit. To find the original, log in to your QuickBooks Online Accountant (QBOA) account, then follow this path: - In the left navigation bar, hover over ProAdvisor, then click **Training**. - Click the **Training Library** tab. - Click **QuickBooks Online** to expand (it may already be expanded). - Click on the **Sales & customers** tile. - Click **Advanced Skills** to expand, if necessary. - Click on the **12. Adjusting for donated inventory** section. The exercise can be found towards the bottom of the page, under ProAdvisor Challenge.

    The Sample Company

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    To complete this exercise, you must be in the Sample company. To get into it, click on the Gear icon on the top right corner of the screen, then select Sample company.
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    Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm.

    Hands On Practice

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    Your client, Craig, donated a fountain and a pump for a fundraiser event and asked you to help him record this in QuickBooks Online. **Here’s what you need to know:** - The donation was for **Amy’s Bird Sanctuary** - He donated **1 rock fountain** and **1 pump** **Here’s what you need to do:** - Set up any accounts necessary for the donation to be recorded - Create the transactions needed to record the donation in Craig’s QuickBooks Online file Remember: the transaction needs to post to a Donations account

    Sales Receipt

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    We need to record that the donation was made to Amy. To do so, we will create a zeroed out Sales receipt. This will remove the item quantities from inventory.
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    Click the "+New" button, then select "Sales receipt".
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    In the Customer field, select "Amy's Bird Sanctuary".
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    A new Clearing Account needs to be created.
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    In the Deposit to field, select "+Add new".
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    The Account Type should remain as Bank. Though this is not an actual bank account, we will use Checking for the Detail Type.
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    In the Detail Type field, select "Checking".
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    In the Name field, type "Clearing Account".
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    Click "Save and Close".
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    On the first line, in the Product/Service field, select "Rock Fountain".
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    Since this is a donated item, the rate needs to be adjusted to zero.
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    In the Rate field, type "0".