1. Chapter 2: Vendors
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

2. Vendor Transactions
In Chapter 2, you learn how Sage 50 handles Accounts Payable transactions with vendors
When Bellwether Garden Supply orders and receives inventory from vendors, Account No , Inventory, is debited. Accounts Payable and the vendor account is credited.
Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

3. Sage 50 Tips
In Chapter 1, you backed up or saved Exercise 1-2. In order to begin where you left off, [if necessary] restore data from Exercise 1-2. Restoring allows you to start where you left off after completing Exercise 1-2.
Sage 50 includes the special journals; for example, the Payments window is the Cash Disbursements Journal; the Purchases/Receive Inventory window is the Purchase Journal.
The work in Chapters 1-7 is cumulative. Chapter 7’s financial statements reflect within chapter activities and end-of-chapter exercises.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

4. Sage 50 Tips
From the menu bar, select Options; Global to change the global settings. If the boxes in the Hide General Ledger Accounts area are checked, then general ledger accounts are hidden. Make sure the boxes in the Hide General Ledger Accounts section are unchecked so that there is a GL Account field on the Purchase Orders, Purchases/Receive Inventory, Payments window and others.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

5. Sage 50 Tips
Sage 50 defaults to hiding the general ledger accounts. This is called Accounting Behind the Screens.
The illustrations in the book show the general ledger accounts. This means there is a GL Account field on the Purchase Orders, Purchases/Receive Inventory, Payments, Sales Invoicing, and Receipts windows.
Once you set global options for one company, they are in effect for all Sage 50 companies.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

6. Excel Reports and PDF Files
Backing Up Chapter 2
In Chapter 2, you make two backups, save two Excel files, and save four PDF files. Refer to the chart shown on textbook pages 2-3 to see all the backups and files saved in Part 1 (Chapters 1-8).
Backup Name
Excel Reports and PDF Files KB
Pg. Nos.
Chapter 2.ptb
3,715 KB 85
Chapter 2_Vendor List and Ledgers.xlsx
21 KB
85-87
Chapter 2_Vendor List.pdf
53 KB
87-88
Chapter 2_Vendor Ledgers.pdf
82 KB 88
Exercise 2-2.ptb
3,703 KB 90
Exercise 2-2_Vendor List and Ledgers.xlsx
Exercise 2-2_Vendor Ledgers.pdf
68 KB
Exercise 2-2_Purchase Order Register.pdf
51 KB
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

7. Chapter 2 Glossary of Terms
Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

8. Purchase discount, p. 55
Cash discounts from vendors in return for early payment of an invoice, for example, 2% 10 days, net 30.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

9. Accounts Payable System, p. 57
Sage 50’s Accounts Payable System provides the summary information needed for the entry that credits Accounts Payable and debits the various asset and expense 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 owed and the due dates of the bills. The Navigation Bar’s Vendors & Purchases selection shows the accounts payable module or accounts payable system.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

10. Purchase orders, p. 60
Purchase orders are used to place an order with a vendor. Purchase Orders, abbreviated PO, authorize the vendor to ship the ordered merchandise at the stated price and terms.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

11. Coding system, p. 71
A combination of letters and numbers that are used to identify customers and vendors. A coding system is set up for Bellwether Garden Supply’s vendors. Bellwether’s coding system uses uppercase letters; for example, Armenta’s Landscaping is coded as ARMENTA.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

12. Case sensitive, p. 71
Refers to the use of lowercase and uppercase letters. When coding a customer or vendor, you should be consistent in the use of either capital or lowercase letters. For example, armenta is not the same as ARMENTA.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

13. Online Learning Center
Go online to for additional resources. Link to Student Edition, select Chapter 2.
Interactive Testing
Glossary of Terms
Feature Quizzes
Narrated PowerPoints
Assessment Rubric
Going to the Net
QA Templates
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14. Going to the Net
Access information about the Internet Corporation for Assigned Names (ICANN) at
What is a TLD and gTLD?
What gTLDs are operated under contract with ICANN?
What types of gTLDs are there? Briefly explain sponsored and unsponsored gTLDs.
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Copyright (c)2014 by The McGraw-Hill Companies, Inc. All rights reserved.

15. Analysis Questions
With the Vendors & Payables Navigation Center serving as the starting point to perform tasks related to Accounts Payable, list five Vendors & Purchases Tasks. Briefly describe the Vendor Management Center.
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16. Navigation Center/Module
Assessment Rubric
Date
Transaction
Navigation Center/Module
Task Window
Journal
Dr./Cr.
3/15
Invoice No. H788 was received from Office Supplies & More for the purchase of five boxes of letter-size file folders, $10.95 each.
3/18
Pay Office Supplies & More for Invoice H788, $53.85
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