Arrow Company makes almost 98 percent of its sales on credit, with an average purchase by its customers of \(\$ 500\). The sales-collection cycle may be summarized as follows:

1. Sale of goods.

2. Recording of the sale in the company's books.

3. Billing of the customer.

4. Receipt of payments.

5. Deposit of payments in the bank.

Required:

a. Identify at least one key control objective at each of the five steps in the sales-collection cycle.

b. Pick three of the steps and describe how your control objectives might be achieved.