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common carrier, lI'OH uoosrer trucking company. we advantage to mary's Sunsmne womu oe a rebate paid quarterly of up to 15% of freight charges. Based

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common carrier, lI'OH uoosrer trucking company. we advantage to mary's Sunsmne womu oe a rebate paid quarterly of up to 15% of freight charges. Based on prior years' business, this rebate would total in excess of $15,000 per year. Without giving this practice much thought, Ed told the twins to begin using Iron Rooster as much as possible. The twins take all of the approved orders, find and box the merchandise and prepare a bill of lading for the carrier. The twins send their copy of the sales order marked "shippedn and a copy of the bill of lading to Mary. After an order has been shipped, the twins update the inventory cards to keep an accurate record of items on hand. At the end of the week, all of the inventory cards are reviewed and a weekly inventory report is prepared. Accounts Receivable Mary matches the sales order marked "shipped\" to her copy of the sales order. She then prepares a two-part invoice and mails the original to the customer. She records the sales in the sales journal and the receivables in the subsidiary ledger. Mary files by date her copy of the invoice with her copy of the sales order and the shipping documents. During the summer season, Mary's Sunshine often has difficulty in shipping customer orders in a timely manner. Supplier delays in delivery to Mary's Sunshine and increased volume cause delays in outgoing shipments. At the end of some months, Mary prepares and mas customer invoices ahead of actual shipment. She claims this practice more closely matches revenues and expenses. As usual, Mary records the sales in the sales journal and in the accounts receivable subsidiary ledger. Customers are allowed to take a 2% discount if they pay within 10 days of the billing date; otherwise, the net amount is due in 30 days. Once per month, Mary prepares a listing of delinquent customers that she sends to the salespeople. They are responsible for collecting the overdue amounts. Cash Receipts Mary opens the mail each day; sorts the cash receipts and the invoices to be paid and logs them in the appropriate logs. Mary records the receipts on customers account in the cash receipts journal and in the accounts receivable subsidiary ledger. After recording all the cash receipts, she prepares a deposit slip and takes the cash to the bank

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