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Situations Cash payments: a . Stone & Grain, Inc., policy calls for project supervisors to purchase the equipment needed for jobs. The supervisors then submit
Situations
Cash payments:
a Stone & Grain, Inc., policy calls for project supervisors to purchase the equipment needed for jobs. The supervisors then
submit the paid receipts to the home office for reimbursement. This policy enables supervisors to get the equipment
quickly and keep construction jobs moving.
b Tony McGraw Construction policy calls for construction supervisors to request the equipment needed for their jobs. The
home office then purchases the equipment and has it shipped to the construction site.
Cash receipts:
a Cash received by mail at Wright Orthopedic Clinic goes to the mail room, where a mail clerk opens envelopes and totals
the cash receipts for the day. The mail clerk forwards customer cheques to the cashier for deposit in the bank and
forwards the remittance advices to the accounting department for posting credits to customer accounts.
b At Cristy Auto Parts, cash received by mail goes straight to the accountant, who debits Cash and credits Accounts
Receivable to record the collections from customers. The Cristy accountant then deposits the cash in the bank.
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