Quicken & Other Budget/Accounting Software/Sales Receipt

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Question
I own/operate a bicycle shop and record my work orders/sales through the sales rec. on Quickbooks Pro 2010.
On a recent sale, instead of taking cash/check I took a used bicycle as trade for the service and product.
How do I properly account for the product sold as well as the traded in bicycle?
Thank you!

Answer
Create an item in QB
Lists > item > add new > name is trade ins
type - non inventory
  category = Select a cost of goods sold account called trade in purchases

Enter on the sales receipt for the
bike sold the total purchase price before the trade in
Then add the newly created item and enter as a negative the amount of the trade in
credit.  You can use this same non-inventory item on all your sales receipts.

The sales receipt step records the sale, but you still need to record the inventory
of the used item. That means you need to set up a specific inventory item for the bike
that you purchased as well as a value and quantity.


Now you need to add the used bike into your inventory.
Lists > item > add new > name - enter the name of the bike
type - inventory (if you use inventory items to track inventory
Give a descriptive name so that you use that item only for the same make/model/year
  of the bike.
Save the item.

Now we need to add the qty of 1 to inventory
Vendor menu > inventory activities > adjust qty on hand
for an adjustment type select from the drop down menu to adjust qty and value on hand
select the item that describes the used item traded in
for an account in the inventory adjustment window select the "trade in cost of goods sold
account "

Save the transaction.

You will now have the correct value, the correct description and qty for the used item in your
inventory.

Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
http://www.qbalance.com

We sell and support QuickBooks Enterprise
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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
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