PC.3.A.12 - Adjusting for Donated Inventory
- 24 steps
Fast & Easy QBO
QuickBooks
The Sample Company
1
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.
Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm.
Hands On Practice
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
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.
2
Click the "+New" button, then select "Sales receipt".
3
In the Customer field, select "Amy's Bird Sanctuary".
A new Clearing Account needs to be created.
4
In the Deposit to field, select "+Add new".
The Account Type should remain as Bank.
Though this is not an actual bank account, we will use Checking for the Detail Type.
5
In the Detail Type field, select "Checking".
6
In the Name field, type "Clearing Account".
7
Click "Save and Close".
8
On the first line, in the Product/Service field, select "Rock Fountain".
Since this is a donated item, the rate needs to be adjusted to zero.
9
In the Rate field, type "0".
10
On the second line, in the Product/Service field, select "Pump".
Since this is a donated item, like the Rock Fountain, the rate needs to be adjusted to zero.