(%) P721A (similar to) Question Help | K Street Productions makes all sales on credit. Cash receipts arrive by mail. Larry Padgitt, the mailroom clerk, opens envelopes and separates the checks from the accompanying remittance advices. Padgitt forwards the checks to another employee, who makes the daily bank deposit but has no access to the accounting records. Padgitt sends the remittance advices, which show cash received, to the accounting department for entry in the accounts. Padgitt's only other duty is to grant sales allowances to customers. (A sales allowance decreases the customer's account receivable.) When Padgitt receives a customer check for $450 less a $55 sales allowance, he records the sales allowance and forwards the document to the accounting department. Requirements 1. Identify the internal control weakness in this situation. 2. Who should record sales allowances? 3. What is the amount that should be shown in the ledger for cash receipts? The job of receiving customers payments is performed by the same person who is responsible for accounting for sales allowances. Requirement 2. Who should record sales allowances? The sales allowances should be recorded by a person who does not have access to the cash receipts Requirement 3. What is the amount that should be shown in the ledger for cash receipts? The amount that should be shown in the ledger for cash receipts is