Question
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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