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 theclerks open to verify that the checks are signedand are constant in amount with the remittanceadvice. The checks and remittance advices are orga-nized into batches and sent to the AR departmentwhere the AR clerk reviews them for correctness,posts to the AR sub ledger. The clerk then preparestwo copies of a remittance list. One of these is filedin the department along with the remittance adviceand the other is sent to the cash receipts departmentwith the checks.4. SYSTEM DOCUMENTATION, RISKANALYSIS, AND INTERNALCONTROLSUpon receipt of the checks and remittance list, thecash receipts clerk reconciles the documents and postthe checks to the cash receipts journal. At the end ofthe day, the clerk prepares a deposit slip and sends italong with the checks to the bank, Finally, the clerksummarizes the batch of cash receipts transactionand posts to the general ledger AR control accountand the cash account.The following describes the cash receipts processTor a company: The mail room staff consists of FIGUREBASIC TECHNOLOGY CASH RECEIPTS SYSTEM4-14Cash ReceiptsAccounts ReceivableGeneral LedgerControllerMail RoomCustomerBankCheckRemittance ListAccountRemittanceSummaryListCheckRemittanceRemittanceListAdviceJournalRemittanceAdviceVoucherGeneralCash ReceiptsJournalARLedgerSub LedgerDepositSlipReconcileChecks withProcessProcessCashUpdateGeneralthe RA andCashReceiptReceiptPrepareRemittance ListLedgerAccountJournalAccountSummaryDeposit SlipVoucherRemittance ListSummaryJournalRemittanceDeposit SlipAccountRemittanceVoucherListSummaryAdviceDepositSlipRemittanceListJournalVoucherRemittanceListFileCheckCheckRemittanceFileListRemittanceAdviceReconcile DepositSlip from Bank withSummary Totals fromAccounts Receivableand Cash Receipts andRemittance ListFileBank1l

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Description: 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 theclerks open to verify that the

Definition: Accounts receivable can be referred to as the amount which is due from the customers of…

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Business

Accounting

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

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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