Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

64 Moira, Inc. has five departments that handle all sales, billing, and collection processes. The five depart- ments are sales, billing, accounts receivable, ware house,

image text in transcribed
image text in transcribed
64 Moira, Inc. has five departments that handle all sales, billing, and collection processes. The five depart- ments are sales, billing, accounts receivable, ware house, and general ledger. These processes occur a. A customer mails a purchase order to Moira, and it is forwarded to the sales department. b. A sales clerk in the sales department prepares a four-copy sales order. Two copies are forwarded har as follows: supplies with cas of the sale. Occa into the store a such cases, the approved by the ize the sale if he sales clerk mus on account At the end summary of a to the account forwarded to 1 this time The super ped to billing, one copy to the warehouse, and one copy to general ledger, The sales clerk posts the sale to the sales journal. c. Upon receiving the sales order, the warehouse picks goods from the warehouse, updates the inventory subsidiary ledger, and ships the goods to customers. The copy of the sales order is given to the common carrier to accompany the shipment. d. Upon receiving the sales order, the billing department looks up prices in the price list and adds these prices to the sales order. One copy is sent to the customer as the invoice. The second copy is forwarded to accounts receivable. e. Upon receiving the sales order from billing, the accounts receivable temporarily stores the sales order until the customer mails a check and remittance advice to accounts receivable. The accounts receivable department matches the check to an open sales order, posts to the accounts receivable subsidiary ledger and the cash receipts journal, and deposits checks in the bank daily. f. Upon receiving the sales order from the sales department, the general journal and general ledger are updated. ment verifies Prices are ma errors are fou charge slip. accounts rec able clerk m The acco in the com the account and details ing departe receivable the accour of past-due referred to ment prol A cash the basic the mail Only, wil account porting! and a da Two dail collectie Required: a. Draw two process maps to reflect the business pro- cesses at Moira. One process map should depict the sales processes, and the second process map should depict the cash collection processes. b. Describe any weaknesses in these processes or internal controls. As you identify weaknesses, also describe your suggested improvement. collectic A dupli the cast bank re In ant rec sales d uses th for po deur called

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Managerial Accounting

Authors: Peter Brewer, Ray Garrison, Eric Noreen, Suresh Kalagnanam, Ganesh Vaidyanathan

2nd Canadian Edition

0070964777, 9780070964778

More Books

Students also viewed these Accounting questions