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Prepare a flowchart of a cash receipts procedures described in the problem.

Prepare a flowchart of a cash receipts procedures described in the problem.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Prepare a flowchart of a cash receipts procedures described in the problem. 

35 clerks who receive and sort the general mail. Included in the mail are envelopes containing cus- tomer checks and remittance advices, which the clerks open to verify that the checks are signed and are constant in amount with the remittance advice. The checks and remittance advices are orga- nized into batches and sent to the AR department where the AR clerk reviews them for correctness, posts to the AR sub ledger. The clerk then prepares two copies of a remittance list. One of these is filed in the department along with the remittance advice and the other is sent to the cash receipts department with the checks. 4. SYSTEM DOCUMENTATION, RISK ANALYSIS, AND INTERNAL CONTROLS Upon receipt of the checks and remittance list, the cash receipts clerk reconciles the documents and post the checks to the cash receipts journal. At the end of the day, the clerk prepares a deposit slip and sends it along with the checks to the bank, Finally, the clerk summarizes the batch of cash receipts transaction and posts to the general ledger AR control account and the cash account. The following describes the cash receipts process Tor a company: The mail room staff consists of
Transcribed Image Text:35 clerks who receive and sort the general mail. Included in the mail are envelopes containing cus- tomer checks and remittance advices, which the clerks open to verify that the checks are signed and are constant in amount with the remittance advice. The checks and remittance advices are orga- nized into batches and sent to the AR department where the AR clerk reviews them for correctness, posts to the AR sub ledger. The clerk then prepares two copies of a remittance list. One of these is filed in the department along with the remittance advice and the other is sent to the cash receipts department with the checks. 4. SYSTEM DOCUMENTATION, RISK ANALYSIS, AND INTERNAL CONTROLS Upon receipt of the checks and remittance list, the cash receipts clerk reconciles the documents and post the checks to the cash receipts journal. At the end of the day, the clerk prepares a deposit slip and sends it along with the checks to the bank, Finally, the clerk summarizes the batch of cash receipts transaction and posts to the general ledger AR control account and the cash account. The following describes the cash receipts process Tor a company: The mail room staff consists of
FIGURE BASIC TECHNOLOGY CASH RECEIPTS SYSTEM 4-14 Cash Receipts Accounts Receivable General Ledger Controller Mail Room Customer Bank Check Remittance List Account Remittance Summary List Check Remittance Remittance List Advice Journal Remittance Advice Voucher General Cash Receipts Journal AR Ledger Sub Ledger Deposit Slip Reconcile Checks with Process Process Cash Update General the RA and Cash Receipt Receipt Prepare Remittance List Ledger Account Journal Account Summary Deposit Slip Voucher Remittance List Summary Journal Remittance Deposit Slip Account Remittance Voucher List Summary Advice Deposit Slip Remittance List Journal Voucher Remittance List File Check Check Remittance File List Remittance Advice Reconcile Deposit Slip from Bank with Summary Totals from Accounts Receivable and Cash Receipts and Remittance List File Bank 1l
Transcribed Image Text:FIGURE BASIC TECHNOLOGY CASH RECEIPTS SYSTEM 4-14 Cash Receipts Accounts Receivable General Ledger Controller Mail Room Customer Bank Check Remittance List Account Remittance Summary List Check Remittance Remittance List Advice Journal Remittance Advice Voucher General Cash Receipts Journal AR Ledger Sub Ledger Deposit Slip Reconcile Checks with Process Process Cash Update General the RA and Cash Receipt Receipt Prepare Remittance List Ledger Account Journal Account Summary Deposit Slip Voucher Remittance List Summary Journal Remittance Deposit Slip Account Remittance Voucher List Summary Advice Deposit Slip Remittance List Journal Voucher Remittance List File Check Check Remittance File List Remittance Advice Reconcile Deposit Slip from Bank with Summary Totals from Accounts Receivable and Cash Receipts and Remittance List File Bank 1l
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