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uncollectible receivables Suppose The Right Rig Dealership is opening a regional office in Omaha. Cary Regal, the office manager, is designing the internal control system. Regal proposes the following procedures for credit checks on new customers, sales on account cash collections, and . The credit department runs a credit check on all customers who apply for credit. When an account proves uncollectible, the credit department authorizes the write-off of the accounts receivable. . Cash receipts come into the credit department, which separates the cash received from the customer remittance slips. The credit department lists all cash receipts by customer name and amount of cash received, . The cash goes to the treasurer for deposit in the bank. The remittance slips go to the accounting department for posting to customer accounts. . The controller compares the daily deposit slip to the total amount posted to customer accounts. Both amounts must agree. Recall the components of internal control. Identify the internal control weakness in this situation, and propose a way to correct it. E9-16 Recording credit sales and collections Learning Objective 1 3. $695 Steller Company had the following transactions in June. Jun. 1 Sold merchandise inventory on account to Carter Company, $1,575. 6 Sold merchandise inventory for cash, $550. 12 Received cash from Carter Company in full settlement of its accounts receivable. Sold merchandise account to Iris Company, $765. 22 Sold merchandise inve account to Driver Company, $230. 28 Received cash from Iris Company in partial settlement of its accounts receivable, $300. Requirements 1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations. 2. Post the transactions to the general ledger and the accounts receivable subsidiary ledger. Assume all beginning balances are $0. 3. Verify the ending balance in the control Accounts Receivable equals the sum of the balances in the subsidiary ledger. E9-17 Journalizing transactions using the direct write-off method Learning Objectives 1, 2 On June 1, 2018, Best Performance Cell Phones sold $21,000 of merchandise to Anthony Trucking Company on account. Anthony fell on hard times and on July 15 paid only $5,000 of the account receivable. After repeated attempts to collect, Best Performance finally wrote off its accounts receivable from Anthony on September 5. Six months later, March 5, 2019, Best Performance received Anthony's check for $16,000 with a note apologizing for the late payment Aa (9 O