 So I made it unread but this is so if you can see now we now we have the accounts receivable that went up now the accounts receivable is part of the issue because I would also have to track this not just by debits and credits but by the sub ledger uh who's those who owes us the money the inventory also needed to be tracked up and down uh with sub ledgers as well as just these debits and credits and uh and then we also have uh the net income down here income is a the credit is good minus the debits are the expenses so the net of those is 75 on the net income which is of course the sales price that we sold the thing for less the cost that we that we spent for it right so that's going to be the journal entry let's see if we can record that over here so we'll save it and close it uh you you've changed normal process terms yes that's okay and then we're going to go okay so on the balance sheet the accounts receivable should have gone up so double click in the ar change in the start date oh one oh one two seven to do to do there it is one eight eight uh boom looks good movie b to the n b in closing that out other sides on the income statement profit and loss p&l 175 there's the 175 movie b to the n and then we said the sales tax balance sheet there should be some kind of liability account might not be called sales tax payable but something like that is something something like that yeah sales tax payable it is called that exactly oh one oh one two seven to do to and so that's going to be the 1356 1356 movie b to the n and then we've got the inventory should have gone down inventory asset boom going in that from oh one oh one two seven so it went up and then it went back down so it's back down to zero or it's zero for us it's back down to what it was for them so it went back down back down to zero okay and then we had the other side on the profit and loss the p&l cost it could sold 100 and so there's the 100 net income 75 net income 75 those are some cool beans cool beans the beans are cool enough you can take them out of the fridge now cool beans okay so then of course the next step would be that we're going to receive a payment on it so the next step would be and we probably would do that in the customer center and we would say okay so there's the invoice now they're going to pay us so so this is where we could we could go into the invoice here double click on it and say that I would like to get paid if if we would and we could go to the receive payment from here receive payment from this particular invoice normal process it automatically ticks it off here ties it out there to the invoice this is the invoice this is the payment I'm going to imagine it's let's just say cash just for the sake of our practice problem from it's going to happen oh one let's say 10 27 boom what's this going to do it's going to then increase it's going to go into unearned revenue I'm not going to get into the whole unearned revenue thing but basically a cash type of account and then the other side's going to decrease the accounts receivable right so if I did that with a journal entry over here we could say okay then this is the receive payment and what's going to happen I'm just going to call it cash is going up even though it's going into unearned revenue because I'm just I'm not going to deal with that right now that's not where our point of focus is and then the other side's going to go and decrease the a to the r ar and so the and the amount is going to be equal to the amount from the invoice and so now cash is going to go up so we'll increase the cash boom and the a to the r I'm going to say f2 plus f2 a to the r r goes down the pirate goes down our so then so that's the so that's going to be the normal process but again tracking this sub ledger for ar becomes the issue it's easy with debits and credits because you don't have the sub ledger so then let's go ahead and record this so we'll just save it and close it and then we can check it out so if I go to it's back to the invoice I'll close the invoice to the invoice shows it's paid now but if I go back to the balance sheet then it didn't go into my checking account but it should have gone into undeposited funds again that's a whole another issue in of itself 010127 that I'm not going to get into right now but the point is it's kind of like a cash type of account went up for the 188 right 188 boom and then the other side closing that out went to the p went not to the p to the l went to the a to the r a to the r r 010127 and so there's the payment so it went up and then it went back down and of course we can track that on the sub ledgers with reports so if I go to the reports drop down and we go to the customer receivables let's go to the customer balance detail report and so now you've got the normal balance it's going up it's going down we can see all the activity it's very clear it's very nice very tidy if I go to the customer center over here we can see in the normal process that the whole we can see the whole thing that happened right we've got the estimate we got the sales order and and we've got the the the invoice and the payment we can then we could select and sort these by just invoices for example if I wanted to sort by invoices we could do that I have to change the year to the whole year again so for the whole year and then we could sort by open invoices right that would be a common thing there are none and then we could say uh overdue invoices are all invoices okay we get the picture so that's going to be that's the normal process so that's going to be the normal process now we'll throw the wrench into the process where we get a payment before we do the invoice and we'll start off with the with the old way we used to do it which still might be useful in some cases in some scenarios in some bookkeeping systems and look at the pros and cons to the new case and the problem is going to be when we have the sub ledgers for this accounts receivable account how do we track that if I then include another account down here which is a liability account because then you can imagine this this customer balance detail report which ties out to the accounts receivable is going to be what are you going to do with that right it's going to be messy so which means we're going to get another report and it gets a little bit more complicated but makes more sense from a financial reporting purpose uh situation so we'll get into that in the future presentations