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The table below shows a list of responsibilities that are performed by various client personnel and departments as part of the processing of sales, inventory,

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The table below shows a list of responsibilities that are performed by various client personnel and departments as part of the processing of sales, inventory, and collection of cash receipts from customers. For each of these responsibilities, place the letter of the responsibility beside the person or department on the attached sheet that should perform that responsibility in a company with a proper system of internal control in operation. Each answer can be used once, more than once, or not at all. LIST OF RESPONSIBILITIES A Prepares sales orders Authorizes customer credit. Prepares purchase orders to vendors. Maintains physical custody of products. Prepares shipping documents F Prepares customer invoices. G Maintains accounts receivable subsidiary ledger. H Receives initial customer receipts. I Safeguards and deposits cash receipts. Maintains accounts receivable control account K Safeguards the cash and checks prior to deposit into bank M Matches copies of documents to insure all customers are invoiced. O Only remittance advices are forwarded here for posting to customer accounts. L Releases goods only upon receipt of a valid copy of a sales order N Checks are immediately endorsed "FOR DEPOSIT ONLY" when received. P Approved customer orders are required before sales orders are released for processing. Q Goods sent to customers based only on authorized sales orders. R Goods are paid for only when proper documentation is on hand to support a payment S Investigates potential customers and their likelihood to pay. T Provides the check balance for the sum of the accounts receivable. Answer Item Departments or Personnel (1) Inventory Warehouse 2) Shipping Department (3) Credit Manager (4) Sales Department (5) General Ledger (6) Cash Receipts (7) Mail Room (8) Accounts Receivable Clerk (9) Billing Department

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