Answered step by step
Verified Expert Solution
Question
1 Approved Answer
FIULEEIEI I'll-ll Llll III rIUUICIII II. J. [LU lull! At Kingston Industries, the revenue processes are conducted by five employees. The ve employees are the
FIULEEIEI I'll-ll" Llll III rIUUICIII II\". J. [LU "lull\"! At Kingston Industries, the revenue processes are conducted by five employees. The ve employees are the sales clerk, warehouse clerk, accountant 1, accountant 2, and the collection clerk. A descnpon of their duties is as follows: 1. The sales clerk receives customer orders by phone. She prepares a fourcopy sales order form. She les one copy, one copy goes to the warehouse clerk, one copy goes to accountant 1, and one copy is mailed to the customer. 2. After receiving a sales order, the warehouse clerk prepares a packing slip, takes the proper items from the warehouse, and ships them with the packing slip enclosed. The sales order is stamped with the ship date, and the shipping log is updated. The sales order is led by customer number. 3. After receiving the sales order from the sales clerk, accountant 1 reviews the customer records and either approves or disapproves customer credit. If he approves the customer's credit, he stamps the sales order "approved" and forwards it to accountant 2. Accountant 1 prepares a threecopy invoice. One copy is mailed to the customer, one copy is forwarded to accountant 2, and one copy goes to the collection clerk. 4. Accountant 2 matches the approved sales order to the invoice and les these by customer number. 5. After receiving a copy of the invoice, the collection clerk posts the sale to the sales journal and the accounts receivable subsidiary ledger. Daily totals from the sales journal are sent to accountant 1, and she posts these sales summaries to the general ledger. 5. A mail clerk forwards customer checks to the collection clerk. The collection clerk stamps the check "For Deposit Dnly" and records it in the accounts receivable subsidiary ledger. The check is also recorded in the cash receipts joumal by the collection clerk. The collection clerk deposits checks in the bank account weekly. A weekly summary of cash receipts is forwarded to accountant 2, and she records these summaries in the general ledger. Required
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started