Jason Co. accepts VISA and MasterCard for any sales transaction exceeding $50.The company has not yet implemented online recording of the credit card transaction, but does have a toll-free number to call for authorization for all sales over $50.The company has two cash registers, but three clerks work during peak times. The company processes credit card sales as follows.
Blank credit card slips are maintained near the cash register along with two card imprinters. The card imprinter imprints the company's account identification and takes an imprint of the customer's credit card. Normally, credit card sales are rung up on the cash register, as would be done with a cash sale. The credit card receipts are kept in a separate location in the cash register. During peak times, however (such as clearance sales), a special line is set up for credit card customers.
The totals are calculated on a regular calculator, and a credit slip is prepared and run through the imprinter. The credit card slips are stored in a convenient location and are recorded on a cash register later in the day. Periodically in the day, the store manager collects all credit card receipts, separates the two copies into one for the store and one for the bank, batches all the slips, and prepares an entry to later record the sales. The batches for the day are collected for a deposit.
The controller then reconciles the deposits made each day with the credit card sales recorded.

Required
a. Identify the strengths and weaknesses of the controls for credit card sales identified.
b. For each deficiency noted, identify the potential effect on the company's financial statements.