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64. Moira, Inc. has five departments that handle all sales, billing, and collection processes. The five departments are sales, billing, accounts receivable, warehouse, and
64. Moira, Inc. has five departments that handle all sales, billing, and collection processes. The five departments are sales, billing, accounts receivable, warehouse, and general ledger. These processes occur as follows: a. A customer mails a purchase order to Moira, and it is forwarded to the sales department. b. A sales clerk in the sales department prepares a four-copy sales order. Two copies are forwarded to billing, one copy to the warehouse, and one copy to general ledger. The sales clerk posts the sale to the sales journal. c. Upon receiving the sales order, the warehouse picks goods from the warehouse, updates the inventory subsidiary ledger, and ships the goods to customers. The copy of the sales order is given to the common carrier to accompany the shipment. d. Upon receiving the sales order, the billing department looks up prices in the price list and adds these prices to the sales order. One copy is sent to the customer as the invoice. The second copy is forwarded to accounts receivable. e. Upon receiving the sales order from billing, the accounts receivable temporarily stores the sales order until the customer mails a check and remittance advice to accounts receivable. The accounts receivable department matches the check to an open sales order, posts to the accounts receivable subsidiary ledger and the cash receipts journal, and deposits checks in the bank daily. f. Upon receiving the sales order from the sales department, the general journal and general ledger are updated.
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