A sales invoice for P 5,200 was computed correctly but, by mistake, was entered as P 2,500 to the sales journal and to the accounts receivable master file. The customer remitted only  P 2,500, the amount on his monthly statement. Select the control that should have prevented the misstatement. Group of answer choices Unauthorized remittance deductions made by customers or other matters in dispute are investigated promptly by a person independent of the accounts receivable function.   Sales invoice serial numbers, prices, discounts, extensions, and footings are independently checked.   The customers’ monthly statements are verified and mailed by a responsible person other than the bookkeeper who prepared them.   Prelistings and predetermined totals are used to control postings.

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Bad Debts

At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.  

Accounts Receivable

The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.