The JeBean Company makes only sales on credit. All JeBean’s customers order through the mail. The company has a small accounting department, a credit department, an inventory department, and a shipping department. After approval of an order by the credit department, the merchandise is assembled in the inventory department and then sent to the shipping department. The shipping department packs the merchandise in cardboard boxes; then it is picked up by the freight company and shipped to the customer. The JeBean Company pays for freight charges on all items shipped to customers after being notified of the cost by the freight company. After verification of shipment, the accounting department mails an invoice to the customer and records the sale. On receipt of the customer’s check, the accounting department records the collection.

Required: Briefly explain the internal controls that the JeBean Company uses for its sales process. Include in your discussion what source documents it probably uses. TK-1