Cash Receipts

The mail is opened by a mail clerk in the sales department. The mail clerk prepares a remittance advice (showing customer and amount paid) for each check and forwards the checks and remittance advices to the sales department supervisor. The supervisor reviews the remittance advices and forwards the checks and advices to the accounting department supervisor.

The accounting department supervisor, who also functions as credit manager in approving new credit and all credit limits, reviews all checks for payments on past-due accounts, and then gives the checks and remittance advices to the accounts receivable clerk, who arranges the advices in alphabetical order. The remittance advices are posted directly to the accounts receivable ledger cards. The checks are endorsed by stamp and totaled. The total is posted to the cash receipts journal. The remittance advices are filed chronologically.

After receiving the cash from the previous days cash sales from the cashier, the accounts receivable clerk prepares the daily deposit slip in triplicate. The original and second copy of the deposit slip accompany the bank deposit, and the third copy is filed by date. The bank deposit is sent directly to National Bank.

Required: Prepare a systems flowchart of cash receipts as described above. Be sure to separate by department.