Chapter 2: Chapter 2: VendorsVendors

McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Vendor TransactionsVendor Transactions

In Chapter 2, you learn how Peachtree handles Accounts In Chapter 2, you learn how Peachtree handles Accounts Payable transactions with vendors Payable transactions with vendors

When Bellwether Garden Supply orders and receives When Bellwether Garden Supply orders and receives inventory from vendors, Account No. 12000, Inventory, is inventory from vendors, Account No. 12000, Inventory, is debited. Accounts Payable and the vendor account is debited. Accounts Payable and the vendor account is credited.credited.

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Peachtree TipsPeachtree Tips

In Chapter 1 on pp. 53 and 54, you backed up (saved) In Chapter 1 on pp. 53 and 54, you backed up (saved) Exercise 1-2. In order to begin where you left off, [if Exercise 1-2. In order to begin where you left off, [if necessary] restore data from Exercise 1-2. Restoring necessary] restore data from Exercise 1-2. Restoring allows you to start where you left off after completing allows you to start where you left off after completing Exercise 1-2.Exercise 1-2.Peachtree includes the special journals; for example, Peachtree includes the special journals; for example, the Payments window is the Cash Disbursements the Payments window is the Cash Disbursements Journal; the Purchases/Receive Inventory window is Journal; the Purchases/Receive Inventory window is the Purchase Journal.the Purchase Journal.The work in Chapters 1-7 is cumulative. Chapter 7’s The work in Chapters 1-7 is cumulative. Chapter 7’s financial statements reflect within chapter activities financial statements reflect within chapter activities andand end-of-chapter exercises.end-of-chapter exercises.

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Peachtree Tips Peachtree Tips Change global settings to show general ledger accounts, pages 62 Change global settings to show general ledger accounts, pages 62 and 63 (Options; Global). If the boxes in the Hide General Ledger and 63 (Options; Global). If the boxes in the Hide General Ledger Accounts area are checked, then general ledger accounts are Accounts area are checked, then general ledger accounts are hidden. Make sure the boxes in the Hide General Ledger Accounts hidden. Make sure the boxes in the Hide General Ledger Accounts section are section are uncheckedunchecked so that there is a GL Account field on the so that there is a GL Account field on the Purchase Orders, Purchases/Receivable Inventory, Payments Purchase Orders, Purchases/Receivable Inventory, Payments window and others.window and others.

To set global options, see steps 1-4 on pages 62 and 63.To set global options, see steps 1-4 on pages 62 and 63.

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Peachtree TipsPeachtree Tips

Peachtree defaults to hiding the general ledger Peachtree defaults to hiding the general ledger accounts. This is called Accounting Behind the accounts. This is called Accounting Behind the Screens. (pp. 62-63).Screens. (pp. 62-63).

The illustrations in the book show the general The illustrations in the book show the general ledger accounts. This means that there is a GL ledger accounts. This means that there is a GL Account field on the Purchase Orders, Account field on the Purchase Orders, Purchases/Receive Inventory, Payments, Sales Purchases/Receive Inventory, Payments, Sales Invoicing, and Receipts windows.Invoicing, and Receipts windows.

Once you set global options for one company, Once you set global options for one company, they are in effect for all Peachtree companies.they are in effect for all Peachtree companies.

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Backing Up Chapter 2Backing Up Chapter 2In Chapter 2, you make two backups and save two Excel files. Refer to the chart shown on textbook page 2 to see all the backups made in Part 1 (Chapters 1-8).

Backup NameBackup Name

Excel ReportExcel Report KBKB Pg Nos.Pg Nos.

Chapter 2.ptbChapter 2.ptb 3,693 KB3,693 KB 8888

Chapter 2_Vendor List and Ledgers.xlsxChapter 2_Vendor List and Ledgers.xlsx 21 KB21 KB 88-9088-90

Exercise 2-2.ptbExercise 2-2.ptb 3,719 KB3,719 KB 96-9796-97

Exercise 2-2_Vendor List and Exercise 2-2_Vendor List and Ledgers.xlsxLedgers.xlsx

21 KB21 KB 9797

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Chapter 2 Chapter 2 Glossary of TermsGlossary of Terms

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Purchase discount, p. 57Purchase discount, p. 57

Cash discounts from vendors in return for Cash discounts from vendors in return for early payment of an invoice, for example, early payment of an invoice, for example, 2% 10 days, net 30.2% 10 days, net 30.

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Accounts Payable System, p. 60Accounts Payable System, p. 60Peachtree’s Accounts Payable System provides the summary information needed for Peachtree’s Accounts Payable System provides the summary information needed for the entry that credits Accounts Payable and debits the various asset and expense the entry that credits Accounts Payable and debits the various asset and expense accounts that the vendor invoices represent. Since Bellwether Garden Supply buys accounts that the vendor invoices represent. Since Bellwether Garden Supply buys on credit from a number of vendors, the company keeps close track of the amount on credit from a number of vendors, the company keeps close track of the amount owed and the due dates of the bills. The Navigation Bar’s Vendors & Purchases owed and the due dates of the bills. The Navigation Bar’s Vendors & Purchases selection shows the accounts payable module or accounts payable system.selection shows the accounts payable module or accounts payable system.

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Purchase orders, p. 62Purchase orders, p. 62

Purchase orders are used to place an Purchase orders are used to place an order with a vendor. Purchase Orders, order with a vendor. Purchase Orders, abbreviated PO, authorize the vendor to abbreviated PO, authorize the vendor to ship the ordered merchandise at the ship the ordered merchandise at the stated price and terms.stated price and terms.

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Coding system, pp. 73-74Coding system, pp. 73-74

A combination of letters and numbers A combination of letters and numbers that are used to identify customers that are used to identify customers and vendors. A coding system is set and vendors. A coding system is set up for Bellwether Garden Supply’s up for Bellwether Garden Supply’s vendors. Bellwether’s coding system vendors. Bellwether’s coding system uses uppercase letters; for example, uses uppercase letters; for example, Anderson’s Landscaping is coded as Anderson’s Landscaping is coded as ANDERSON.ANDERSON.

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Case sensitive, p. 74Case sensitive, p. 74

Refers to the use of lowercase and Refers to the use of lowercase and uppercase letters. When coding a customer uppercase letters. When coding a customer or vendor number, you must use either a or vendor number, you must use either a capital or lowercase letter. For example, capital or lowercase letter. For example, anderson is not the same as ANDERSON.anderson is not the same as ANDERSON.

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Chapter 2, Internet Activity, p. 91Chapter 2, Internet Activity, p. 911.1. From your Internet browser, go to the book’s website at From your Internet browser, go to the book’s website at

www.mhhe.com/yacht2011.

2.2. Link to Student Edition.Link to Student Edition.

3.3. In the Choose a Chapter field, select Chapter 2. Observe that the Quizzes and More Resources list includes additional activities. In the Course-wide Content list, link Internet Activities; then link to Part 1 Internet Activities for Chapter 1-8. Select Open or Save.

4.4. Complete the Chapter 2 activity ACCOUNTING STUDENTS – Chapter 2. Complete steps 1-3.

5.5. Using a word processing program, write a summary about the Using a word processing program, write a summary about the site(s) you selected. Remember to include the website site(s) you selected. Remember to include the website address of each link. Your summary should be no more than address of each link. Your summary should be no more than 75 words or less than 50 words. 75 words or less than 50 words.

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Going to the Net, p. 91Going to the Net, p. 91Access information about domain name Access information about domain name statistics atstatistics at http://www.zooknic.com/Domains/counts.html

1.1. gTLDgTLD is an abbreviation for what word(s)? is an abbreviation for what word(s)? ((Hint:Hint: Click on Click on gTLDgTLD to answer this question.) to answer this question.)

2.2. What is the number of domain names What is the number of domain names worldwide?worldwide?

3.3. How many .com names are there? How many .com names are there? 4.4. List the extensions that are used with domain List the extensions that are used with domain

names. names.

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Assessment Rubric, pp. 97-98Assessment Rubric, pp. 97-98

Date TransactionNavigation

Center/ModuleTask

WindowJournalDr./Cr.

3/15 Invoice No. H788 was received from Prince Office Supplies for the purchase of five boxes of letter-size file folders, $10.95 each.

3/18 Pay Prince Office Supplies for Invoice H788, $53.85

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Analysis Question, p. 98Analysis Question, p. 98

With the Vendors & Payables Navigation With the Vendors & Payables Navigation Center serving as the starting point to Center serving as the starting point to perform tasks related to Accounts perform tasks related to Accounts Payable, list four features of the Vendors & Payable, list four features of the Vendors & Purchases Navigation Center.Purchases Navigation Center.

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