Flowchart of PeachyKeen Co. Cash Receipts The following is a description of the cash receipts process at the PeachyKeen Co., a distributor of fruitscented lotions and sprays that it has manufactured under licensing agreements. The cash receipts process is not perfect; there are internal control problems. Dont worry about these for this assignment. Your assignment is to flowchart the process as it is, including any flaws. Be sure to include all Documents, Processes, Files (hardcopy and electronic), Start, End, and (if needed for readability) On Page and/or Off Page Connectors. You may do this in Excel or Word, using flowcharting shapes. Prepare the flowchart in good form as described in the textbook and in class, making it readable onscreen and ready to be printed. Customer payments on accounts receivable are received in the mailroom and opened by the mail clerk, Gerald Klett, who lists the checks that were received in a document called a cash prelist (in triplicate).

Gerald sends one copy of the prelist to the controller (Parker Shelton), one to the cashier (Pam Lewis) with the checks, and the last to Simon Swift, the accounts receivable clerk, to whom Gerald also sends the remittance advices (mailed in by the customers with their payments).

Simon enters the customer remittances into a computer screen template. The accounting software (installed on a LAN) updates the Customer Master File records and produces an accounts receivable posting report, which is a detailed listing of the cash receipts postings.

Simon sends a printout of the accounts receivable posting report to the controller.

Simon sends the remittance advices to the cashier, Pam Lewis.

Simon retains his copy of the prelist. Using the Accounts Receivable module software, Pam Lewis accesses the accounts receivable posting report prepared by Simon Swift.

Using the prelist, she assures that the checks were correctly posted.

After correcting any posting errors1, she uses a menu in the Cash Receipts module to prepare a deposit ticket (three copies) and a cash receipts journal (register) detailing the posted cash receipts transactions.

She files her copy of the prelist and forwards the deposit (checks and two copies of the deposit ticket) to the treasurer, Lillian Stockton.

Pam also forwards one copy of the deposit ticket to the controller, Parker Shelton, along with the cash receipts journal.

Pam returns the remittance advices to Simon Swift, who files them with his copy of the prelist.

On a daily basis, Parker Shelton, Controller, compares his copy of the prelist with: the copy of the deposit ticket, the cash receipts journal from Pam Lewis, and the accounts receivable posting summary from Simon Swift.

Mr. Shelton initials and files the reconciliation. (This is then available for his review of the monthly financial statements, which does not need to be included in the cash receipts flowchart.)

After the daily reconciliation, he forwards his approved copy of the deposit ticket to the treasurer, Lillian Stockton, who makes the deposit, retaining one copy of the deposit ticket.

A validated copy of the deposit ticket is returned by the bank; Ms. Stockton uses this copy for reconciling the bank statement2. At the end of the day, Don McKenna, the bookkeeper, releases the Journal Entry Transaction File generated by the Cash Receipts module to update the General Ledger Master File (accounts receivable and cash accounts.) 1 Clearly, there are control problems. Cashier should not be able to edit the accounts receivable information. Flowchart the process as it is. 2 Treasurer should not be the person to reconcile the bank statement. See note 1