Your examination of the financial statements of General Department Store, Inc. disclosed the following:

1. The store has 30,000 retail accounts which are billed monthly on a cycle basis. There are twenty billing cycle divisions of the subsidiary accounts receivable ledger, and accounts are apportioned alphabetically to the divisions.

2. All charge sales tickets, which are prenumbered, are microfilmed in batches for each day's sales. These sales tickets are then sorted into their respective cycle divisions, and adding machine tapes are prepared to arrive at the total daily sales for each division. The daily totals for the divisions are then combined for comparison with the grand daily total charge sales determined from cash register readings. After the totals are balanced, the daily sales tickets are filed behind the related customer account cards in the respective cycle divisions.

3. Cycle control accounts for each division are maintained by postings of the tapes of daily sales.

4. At the cycle billing date the customers' transactions (sales, remittances, returns, and other adjustments) are posted to the accounts in the individual cycle. The billing machine used automatically accumulates six separate totals: previous balances, purchases, payments, returns, new balances, and overdue balances. After posting, the documents and the customers' statements are microfilmed and then mailed to the customer.

5. Within each division a trial balance of the accounts in the cycle, obtained as a by-product of the posting operation, is compared with the cycle control account.

6. Credit terms for regular accounts require payment within 10 days of receipt of the statement. A credit limit of \(\$ 300\) is set for all accounts.

7. Before the statements are mailed they are reviewed to determine which are past due. Accounts are considered past due if the full balance of the prior month has not been paid. Past due accounts are noted for subsequent collection effort by the credit department.

8. Receipts on account and customer account adjustments are accumulated and posted in a similar manner.

Required:

List the audit procedures that you would apply to testing transactions of one billing cycle division. Confine your audit procedures to the sales tickets and charges to the accounts. Do not discuss the audit of cash receipts or customer account adjustments.