The following questions deal with internal controls in the sales and collection cycle. Choose the best response.

a. For effective internal control, the billing information should be entered by the

(1) sales department.

(2) accounting department.

(3) shipping department.

(4) credit and collection department.

b. A company policy should clearly indicate that defective merchandise returned by customers is to be delivered to the

(1) inventory control clerk.

(2) sales clerk.

(3) receiving clerk.

(4) accounts receivable clerk.

c. For good internal control, the credit manager should be responsible to the

(1) treasurer.

(2) sales manager.

(3) customer service manager.

(4) operations manager.

d. For good internal control, the billing department should be under the direction of the

(1) controller.

(2) sales manager.

(3) president.

(4) credit manager