do you sell merchandise for cash to your clients
well then you should know how to record that in quickbooks online
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when customers pay immediately for products we sell them the correct document to give
them is a sales receipt selling items makes the quantity decrease and decreases the inventory
asset for the purchase cost of the goods that were given to the customer
it increases the sales income account for the amount that the customers pay
for example let's imagine on january 5th of 2020 we sold 20 apples cash today to allen all cash
sales are directly deposited into the bank account at the moment we make the sale so what would the
price of the sale be well 20 apples that we sell at fifty dollars each means that alan has to give
us a thousand dollars and what did we pay for the apples that we just gave to alan well ten
dollars each for twenty apples means the cost of the apples that were sold is two hundred dollars
now this is what the trial balance looks like before that sale but if we earned
a thousand dollars in sales income that means that sales will show up for the first time as
a thousand dollars and because the cost of the goods that were sold in that sale were 200
for that very same sale receipt cost of goods sold will show up in the trial balance for
the first time as two hundred dollars and because we gave two hundred dollars worth
of merchandise or merchandise that we paid two hundred dollars for since that went out
that means that inventory asset will decrease by two hundred and become three thousand two hundred
and of course because alan gave us a thousand dollars cash we have a thousand dollars less
negative in our balance and it goes down from three thousand three hundred negative
to two thousand three hundred negative and these will be the numbers in the trial balance after we
record this sale we go to the top left and click new and we go down to sales receipt
the date is january 5th of 2020.
the customer is alan arby now the product or service in this case is apples and we are selling
20 of them and that means he has to pay us a thousand dollars now this is really sale receipt
now we'll leave it as sale receipt number three it doesn't really matter
and notice the money is deposited deposited directly into the cash and chase bank so it's very
easy to fill out a sale receipt when you get paid immediately for merchandise that you're selling
when we click save and close you can see that the numbers in the trial balance are
exactly as what we expected and exactly as what we predicted at the moment that we recorded
this sale receipt cost of goods sold 200 sales or the the sales product income a thousand
and then of course inventory asset went down to three thousand three hundred now let's understand
why inventory asset is three thousand three hundred click reports then click inventory
valuation detail and you can see at the bottom of the apple section this january 5th sale receipt
decreased the quantity of apples from 50 on hand decreased by 20 by 20 and that's
why the cost of the sale was hundred and now we only have a hundred and thirty apples left
in inventory let's take a look at the next example let's imagine on january sixth twenty twenty
we sold 20 bananas cash today to betty well all cash sales are directly deposited
the price of this sale can you guess well it's 20 bananas and we sell them for a hundred
dollars each so that's two thousand dollars and what's the cost of this sale well we bought the
bananas for twenty dollars each and we're selling twenty of them so that's four hundred dollars and
those will be the numbers that change the trial balance when we record that sale okay so that's
january six bananas to betty so we click in the top well click in the top left sale receipt
january 6 betty the product is bananas and we're selling twenty that means she has to give us
two thousand dollars after we click save and close we should click reports
trial balance and you can see that sales has increased to three thousand and cost of goods
sold has increased to six hundred let's go over to the three thousand and double click
and you can see both sales have been recorded in the sales income account sales of product
income and you can see the first sale made it show up for a thousand and then this second sale
receipt on this second line here you can see the january sixth sale receipt to betty you can see
increase the sales income by two thousand because that was the amount of sales income we earned
and that's why it's three thousand dollars if you click reports and go back to the trial balance
and click on the six hundred for cost of goods sold you can see excuse me reports
trial balance make sure you click on the 600 for cost of goods sold you can see the
very same sales receipts are recorded in cost of goods sold for the same dates and same customers
but if it's in the cost of goods sold account it's showing the amount that we paid for the items not
the amount the customer paid because we're looking at the sale receipts in cost of goods sold so the
second sale receipt increase the cost of goods sold by 400 click reports click trial balance
so if cost of goods sold went up by 400 that means inventory asset decreased by 400
for the amount of this sale double click now you can see if you double click inventory the number
and go down to the very last transaction in the inventory account january 6 the sale to betty
has decreased the inventory account by 400 because that was the cost of goods sold so
now the balance of the inventory account is 2900 and if you want to know the details of the balance
of the inventory account you click reports you click inventory valuation detail now look at
the bananas you can see that this sale receipt on january 6 decreased the quantity of bananas by 20
and therefore decrease the value by four hundred so we now have remaining thirteen hundred dollars
worth of apples because we have a hundred and thirty apples we have eighty bananas left that we
paid sixteen hundred for and when you add up the purchase cost of apples plus bananas that's what
explains in the trial balance the inventory asset balance of two thousand nine hundred