proposed procedures

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.