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The customer biIJing and collection functions of &e Robinnn Com. party, a small paint manufacturer, are attended to by a receptionist, an accounts receivable clerk,

The customer biIJing and collection functions of &e Robinnn Com.

party, a small paint manufacturer, are attended to by a receptionist, an

accounts receivable clerk, and a cashier who also serves as a secretary

The .Cotnpany.s paint pmduas are nld tQ wholesalers and retail sales.

The allawinig desaibes aJ! de procedures pertained by thewa

Qf the Robinnn Company pertanlng n wstomer billin gs cnmd

1. The ma! is opened by the recepuanist, who gives ae customem ' pur

chase orders to the accounts receivable clerk. Fifteen to twenty orders

are received each day. Undo insauctions to expedite the shipment

af ardem. the accounts recei''able Jerk at once prepares a

sales inx'oice torn which is distributed as follows:

a. Copy #l is the customer biUI

copy and is held by the accounts

receivable clerk until notice of sh

lpment is received.

b. Copy

#2 is the accowlts receivable department copy and is held far

ultra

posting of &e accounts race'ivable records.

l&tC '

c- Copies,#3.and #4 a" sent to the shipping deparanent.

d. (;opy #5 is sent to the stareroon as'auhority for release af de

to &e shipping deparanen '

2. After the paint ordered has been removed from the storeroom to the

shipping depart)ent, the shipping department prqalu tbn bills of

lading and labels the cartons. Sales invoice mnv +4 i inwn-.I .

#4 is inserted in a

carton as a padding slip. After the m-cher has D'i

up the aipment,

ae cwtomer's copy. o the bin of lading and'copy #3, on which ar e

noted any undershipments, are resumed to the 'a

accounts receivable

clerk. The Company does not "back order" in rE

the event of under-

acnpany s copy ot tae biU of fading is Bled by the dipping

3. \when copy #3 and the customer's copy of the bill of ladjng are re-

pnua Dy mlm. them and inserting quantid ' shipped, unit

prices, extensions, discounts, and taul Tbe accounts receivable clerk

heR malls copy I and the CDpv of the biU of I din tb

Copies #2 and #3 are stapled ' to.weer.

The indo''idual accounts rerei''able ledger cards d b

Eh-n-s reccnzble duk by a books(n,ping machine procedure whereby

the sales register is pr

as a alban copy of the postings. postings

are made hom copy

.which.i: then Sled: al.ng wih :tapl;-;t:3;:'a

copy #5, in numerical arden. 3fQnchly the geneml le

clerk sum-

mmes the sales re ster or posting to the genera] ]

accounts.

since ae Kobjnnn Company i8 short or ash, Ehe depa#it o nceipu

.also expedited. The receptionist bums aver all mail receipts and

related correspondence the accounts recei''abi I k h '

the checks and determines that the accomoan

vouchers or corre-

spondence contains enou6

detail to p

of the ac

to the cashier, who pnpar" the daily deposit. No currency is recs em

Ihe accounts receivable cl(

then en

in the mail and no paint is sold over the counter at the factory.

6. The accounts receivable clerk uses.the vouchers or correspondence that

mpanlCS ae checks to post Me accounts recei-able ledger cuds

The bo

: machine plrepa:cs a c"h receipts register u"a carbon

copy of the pc

ledger clerk summarizes the

cash receipts register for "

posting to the gE

ledger accounts. The

accounts receivable clerk also mFresn

with cuStoHCrs about un-

.tum..cn. and pnpnes the appropriate audit mena. I)imnr

or ad

memos- I)isputed

items af large amount ue turned over to the sales manager for settle-

ment. Each month the accounts receivable clerk prepares a trial bal-

ance of the open accounts receivable and compares the resultam total

with the geneml ledger control account for a:

accounts receivable.

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