Question

Which of the following sources of revenue should be set up as a service item in QuickBooks Online? Select all that apply.

Select one or more:

a. Amount charged for shampoo sold in a hair salon

b. Amount charged for haircuts in a hair salon

c. Amount charged for milk sold in a grocery store

d. Amount charged for the review of a contract for a client in a law firm

Answer 1

Service items are (b),(d)

Because in (b) The regular nature of business is hair cutting and collecting the amount for the rendered service of hair cutting.

In (d) we are rendering review service to the client.So it is considered as a service item

But in (a) and (c) we only selling the goods.It is not a service income.This is trading of goods