The following procedures are used by Richardson Light Works a When
The following procedures are used by Richardson Light Works.
a. When customers pay cash for lighting products, the cash is placed in a cash register and a receipt is issued to the customer.
b. At the end of each day, the cash is counted by the cashier and a cash count sheet is prepared.
c. The manager checks the accuracy of the cash count sheet before taking the cash to the bank for deposit.
d. The journal entry to record cash sales is prepared using the cash count sheets.
e. Checks are written to suppliers immediately after supplier invoices are received.
f. Receiving reports are prepared to indicate the quantity and condition of goods received from suppliers, based on inspections made by warehouse personnel.
1. Indicate whether each procedure represents a strength or weakness. Explain your reasons.
2. For each weakness, describe a change in procedures that would address the weakness.
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