El Cordova Co. is a small merchandising company with a manual accounting system. An investigation revealed that
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El Cordova Co. is a small merchandising company with a manual accounting system. An investigation revealed that in spite of a sufficient bank balance, a significant amount of available cash discounts had been lost because of failure to make timely payments. In addition, it was discovered that the invoices for several purchases had been paid twice. Outline procedures for the payment of vendors’ invoices, so that the possibilities of losing available cash discounts and of paying an invoice a second time will be minimized. Discuss.
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The use of the voucher system is appropriate the essentials of which are outlined below Although inv...View the full answer
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