MODULE 5: Billing and Item Management
MODULE 6: Transaction Processing
MODULE 7: Allocations and Cost Management
2 of 3

Lesson 6.7: Activity

Practical Activity: Recording Adjustments

Objective: Record a bad debt write-off and a monthly depreciation entry.

1. Write-Off Bad Debt:

    ◦ Go to Transactions > Accounts Receivable > Revenue Journal.

    ◦ Check the Credit Memo box in the Options area.

    ◦ Client: Select a client (e.g., “County School District”).

    ◦ Amount: 50.00.

    ◦ Distribution: Select an expense account (e.g., “Bad Debt” or “Miscellaneous Expense”).

    ◦ Click Save.

2. Record Depreciation:

    ◦ Go to Transactions > General Journal > Journal Entries.

    ◦ Memo: “Monthly Computer Depreciation”.

    ◦ Line 1: Account “Depreciation Expense,” Debit 100.00.

    ◦ Line 2: Account “Accumulated Depreciation,” Credit 100.00.

    ◦ Check that the Balance displayed is 0.00.

    ◦ Click Save.