Madison Water District bills its customers on a monthly cycle. At the end of each month a
Question:
Madison Water District bills its customers on a monthly cycle. At the end of each month a meter reader goes into the field with a meter reading worksheet listing all of the customers on that route. The reader takes the ending reading from each meter and returns the sheet to the billing clerk.
The billing clerk enters the ending meter readings into the billing system. A billing exception report is generated that compares the previous ending reading with the current, and reports usages with large variances from the prior months and any with negative readings
When all variances have been explained and updated in the system, the meter reading worksheets and billing exception reports are filed by date and route number. The billing clerk then prints the invoices to be mailed to the customers. The invoice includes a turnaround document portion that is torn off and returned with the payment.
Customer payments include cash and checks received at the Madison Office and received in the mail. At the beginning of each day, the cashier scans the turnaround documents and payment, endorses all checks and prepares a deposit slip for the checks and the cash. An administrative assistant deposits the checks, cash, and deposit slip at the bank each afternoon.
When checks are received as payment for accounts due, the turnaround document is included with the payment. The Cashier sends the turnaround to accounts receivable. The turnaround documents and validated deposit slips are used to update accounts receivable at the end of the day. The turnaround documents and validated deposit slips are stored in a file drawer by date.
Each week, accounts receivable generates a cash receipts report and an aged trial balance using the accounts receivable ledger. The cash receipts report is reviewed by management. A copy of the aged trial balance is also sent to the credit and collections department for review.
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