Cash Receipts Procedures

Mail room employees open cash receipts from customers and reconcile the amounts on the checks and remittance advices and send remittance advices to the accounting department, where a clerk records each remittance advice on a remittance list. The remittance list is then sent to the cash receipts department. Using the remittance advices, the accounting clerk updates the customer accounts receivable on the department personal computer and files the advice in the department. At the end of the day, the clerk prepares an accounts receivable summary on the personal computer and sends a hard copy of the summary to the general ledger department.

The mail room clerk sends the checks to the cash receipts department, where a clerk endorses each check with the words $$For Deposit Only.$$ Next, the clerk reconciles the checks with the remittance list and records the cash receipts in the cash receipts journal on the department personal computer. Finally, the clerk prepares a deposit slip and sends it and the checks to the bank.

The general ledger clerk posts the accounts receivable summary to the general ledger accounts receivable control account and the cash account and files it in the general ledger department.

Requirements:

Create a document flowchart of the existing system.