PML Manufacturing, Inc., a privately held corporation, manufactures office equipment. The cash receipts portion of the revenue cycle is described below:

1. Mail is opened in the mailroom. Remittances (a check and a copy of the invoice) are separated.

2. A control list of checks is prepared and sent to the controller.

3. Checks are sent to the cashier and the remittance advices (copies of the invoices) to the accounts receivable department for posting.

4. Cashier 1 endorses the checks and prepares a duplicate deposit slip.
5. Cashier 2 compares the checks and deposit slips. He investigates any discrepancies and a messenger deposits the cash daily.
6. A messenger takes the deposit to the bank.
7. The messenger returns the validated duplicate deposit slip directly to the controller.
8. The controller reconciles the control list of checks and duplicate deposit slip and resolves any differences.
9. The controller files the reconciliation, duplicate deposit slip and control list of checks received chronologically.
Required:
Prepare a flowchart of the cash receipts procedures.

Transcribed Image Text:

Clerks Charting, Inc. Flowchart for Sales and Cash Receipts Sales Department Accounting Department Cashier Supervisor Supervisor Accounts Receivable Clerk