Apex Supply Company is a downtown Philadelphia wholesaler of electrical products that sells to electrical retailers. It
Question:
Apex Supply Company is a downtown Philadelphia wholesaler of electrical products that sells to electrical retailers. It carries an inventory of approximately 10,000 items. Customers place orders by phone and buy on credit through a line-of-credit arrangement with Apex. A typical transaction involves the customer first contacting the customer services department to verify availability and check the price of the item or items being sought. If the customer decides to buy, he or she is transferred to a sales agent, who takes the order. The shipping clerk sends the products to the customer by a common carrier. The billing clerk records the sale in the sales journal, prepares an invoice, and sends it to the customer, who is given 30 days to make payment. The AR clerk also receives a copy of the invoice and records it in the AR ledger. Subsequently (within 30 days) the customer sends a check and the remittance advice to Apex. The cash receipts clerk receives the check, records it in the cash receipts journal, and updates the cash account. The remittance advice goes to the AR clerk, who updates (reduces) the customer’s account receivable.
Make a expenditure cycle flowchart based on the case study above.
Auditing A Practical Approach with Data Analytics
ISBN: 978-1119401742
1st edition
Authors: Raymond N. Johnson, Laura Davis Wiley, Robyn Moroney, Fiona Campbell, Jane Hamilton