Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Carry, Jonelle, and Raven are employed by Sally Shriver. Sally is knowledgeable about managing an office and establishing internal controls. Sally has segregated the cash

Carry, Jonelle, and Raven are employed by Sally Shriver. Sally is knowledgeable about managing an office and establishing internal controls. Sally has segregated the cash receipt duties by having Carry open the mail and prepare a triplicate list of the payments received from customers. Carry then sends one copy of the payments list to Jonelle, the cashier, who deposits the money received daily in the bank. Raven, the recordkeeper, receives a copy of the payments list and posts those payments to customers' accounts receivable in the general ledger. Carry, Jonelle, and Raven treat themselves to an expensive dinner once a month and pay for it as follows: First, Jonelle endorses one of the customer's checks in Sally Shriver's name and then cashes it at the bank instead of including it with the deposits. Carry then destroys the backup that accompanied the check that was received from the customer. Finally Raven posts the payment to the customer's account receivable as a miscellaneous credit instead of as a payment received. The three justify their actions because Sally Shriver pays them a low hourly rate and they know that Sally will most likely not miss the money. Be sure to include the following in your original response which should be at least three paragraphs with at least five sentences each: 1. A brief summary of the scenario in your own words 2. If you were Sally Shriver, who would you have prepare the bank reconciliation? 3. Do you consider the payment of the expensive dinner to be justified, human error, or human

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

Strategy In Managerial Accounting

Authors: Shahid Ansari

1st Edition

0256256225, 978-0256256222

More Books

Students also viewed these Accounting questions