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1. Ahmad Lee has asked you to document the cash receipts system at Super Saver Store. Ahmad's narrative of the system follows: Customer payments include
1. Ahmad Lee has asked you to document the cash receipts system at Super Saver Store. Ahmad's narrative of the system follows: Customer payments include cash received at the time of purchase and payments received in the mail. At day's end, the treasurer endorses all cheques and prepares a deposit slip for the cheques and the cash. A clerk deposits the cheques, cash, and deposit slip at the local bank each day. When cheques are received as payment for accounts due, a remittance slip is included with the payment. The Treasurer sends this to accounts receivable. Data from the remittance slips are entered into the computer, and the accounts receivable database is updated. The remittance slips are stored in a file drawer by date. Every week, accounts receivable generates a cash receipts report and an aged trial balance using the accounts receivable ledger. The cash receipts report is sent to the Management where it is reviewed. A copy of the aged trial balance is sent file drawer by date. Every week, accounts receivable generates a cash receipts report and an aged trial balance using the accounts receivable ledger. The cash receipts report is sent to the Management where it is reviewed. A copy of the aged trial balance is sent to the credit and collections department, where it is reviewed. Required: (a) Develop a context diagram and a Level 0 Document Flow Diagram for the cash receipts system at Super Saver Store. [25 marks] (b) Prepare a document flowchart for the cash receipts system at Super Saver Store. [25 marks] [Total 50 marks] Next
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