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2. The Cash Receipts System The cash receipts system starts when the customers send back the remittance advice with their payment. This allows Craig
2. The Cash Receipts System The cash receipts system starts when the customers send back the remittance advice with their payment. This allows Craig Nelson, the mail room clerk, to collect the check from the customer and process the cash receipt. Nelson then records the cash receipts in the cash receipts journal, out of which comes a journal voucher that is sent to the general ledger department. Nelson prepares two deposit slips for the funds to be deposited into the bank along with the checks. The remittance advice is sent to the general ledger department to update the accounts receivable records. Dave Fielder, the general ledger clerk, uses the remittance advice sent from the mail room to update the accounts receivable subsidiary ledger. Fielder also prepares the accounts receivable summary and reconciles it with the journal voucher from the cash receipt journal, which is used to update the general ledger. The remittance advice, account summary, and journal voucher are put into the files for record in the general ledger department. Periodically, Fielder reconciles the deposit slip copy from the bank with the remittance advice, the accounts receivable summary, and the journal voucher.
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