Jasmine Tea (Prepared by Meredith Coyne and Gaby Keely, Lehigh University) Jasmine Teal is the largest...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jasmine Tea (Prepared by Meredith Coyne and Gaby Keely, Lehigh University) Jasmine Teal is the largest coffee distributor in the Northeast. They distribute specialty tea leaves to coffee shops, cafes, and restaurants. The company headquarters is located in Newark, New Jersey; in addition, there are two distribution warehouses located in Philadelphia and Boston. Established in 1985, the company's first warehouse was located in Newark. Jasmine Teal began by purchasing and distributing from one Chinese tea supplier. Within two years, sales had doubled, and they were seeking more varieties of tea. They now have dozens of suppliers and more than 50 varieties of tea. Currently there are 155 employees and annual sales of more than $50 million. Last year was their most successful year with an annual sales growth of 6.5 percent. Jasmine Teal has been receiving complaints from customers and suppliers about billing, shipping. and payment problems. Under the current operating system, each department has independent computer terminals. The complaints and inefficient computer system have triggered the management team to seek alternative solutions that will enable them to better serve their customers and meet the demands. Purchasing Process: The purchasing agent monitors the inventory and decides when more tea supplies are needed. The purchasing agent begins the purchasing process by manually preparing two hard copies of a purchase requisition form. Then the clerk selects a supplier and enters the purchase requisition information into a computer terminal in the department. The computer terminal generates three hard copies of a PO. One copy is sent to the supplier, one copy is sent to the AP department, and the third copy is filed in the purchasing department. Once the purchasing agent has entered the purchase requisition information into the computer terminal, he files one copy of the purchase requisition and sends the other copy to AP. When the goods are received in Newark, the receiving department verifies them using the packing slip, which is attached to the goods. The goods are verified and sent to the warehouse for storage. The receiving clerk then updates the inventory and posts to the general ledger from a terminal in the department. AP and Cash Disbursements Procedures: The AP clerk receives the supplier's invoice and reconciles it with the purchase requisition and PO. Then the clerk posts the liability to the purchases journal and voucher register. Each day, the clerk visually searches the voucher register file from her terminal for open invoices that are due to be paid. The clerk then prepares the check. From a computer terminal, the clerk updates the check register and voucher register and posts to the general ledger. The negotiable portion of the check is mailed to the vendor, and a check copy is filed. The purchases requisition, invoice, and PO are then filed in a closed voucher file. Required: a. Create a system flowchart of the above existing system (for purchase process). b. Create a system DFD of above existing system (AP and cash disbursements system) c. Describe the risk and control for above system? Jasmine Tea (Prepared by Meredith Coyne and Gaby Keely, Lehigh University) Jasmine Teal is the largest coffee distributor in the Northeast. They distribute specialty tea leaves to coffee shops, cafes, and restaurants. The company headquarters is located in Newark, New Jersey; in addition, there are two distribution warehouses located in Philadelphia and Boston. Established in 1985, the company's first warehouse was located in Newark. Jasmine Teal began by purchasing and distributing from one Chinese tea supplier. Within two years, sales had doubled, and they were seeking more varieties of tea. They now have dozens of suppliers and more than 50 varieties of tea. Currently there are 155 employees and annual sales of more than $50 million. Last year was their most successful year with an annual sales growth of 6.5 percent. Jasmine Teal has been receiving complaints from customers and suppliers about billing, shipping. and payment problems. Under the current operating system, each department has independent computer terminals. The complaints and inefficient computer system have triggered the management team to seek alternative solutions that will enable them to better serve their customers and meet the demands. Purchasing Process: The purchasing agent monitors the inventory and decides when more tea supplies are needed. The purchasing agent begins the purchasing process by manually preparing two hard copies of a purchase requisition form. Then the clerk selects a supplier and enters the purchase requisition information into a computer terminal in the department. The computer terminal generates three hard copies of a PO. One copy is sent to the supplier, one copy is sent to the AP department, and the third copy is filed in the purchasing department. Once the purchasing agent has entered the purchase requisition information into the computer terminal, he files one copy of the purchase requisition and sends the other copy to AP. When the goods are received in Newark, the receiving department verifies them using the packing slip, which is attached to the goods. The goods are verified and sent to the warehouse for storage. The receiving clerk then updates the inventory and posts to the general ledger from a terminal in the department. AP and Cash Disbursements Procedures: The AP clerk receives the supplier's invoice and reconciles it with the purchase requisition and PO. Then the clerk posts the liability to the purchases journal and voucher register. Each day, the clerk visually searches the voucher register file from her terminal for open invoices that are due to be paid. The clerk then prepares the check. From a computer terminal, the clerk updates the check register and voucher register and posts to the general ledger. The negotiable portion of the check is mailed to the vendor, and a check copy is filed. The purchases requisition, invoice, and PO are then filed in a closed voucher file. Required: a. Create a system flowchart of the above existing system (for purchase process). b. Create a system DFD of above existing system (AP and cash disbursements system) c. Describe the risk and control for above system?
Expert Answer:
Answer rating: 100% (QA)
a System Flowchart of Purchase Process b System DFD of AP and Cash Disbursements Sy... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Brazil is the largest coffee producer in the world, and coffee is one of Brazils major export goods. Suppose that in 20 years, Brazil no longer produces much coffee and imports most of its coffee...
-
Employees are more successful in getting problems resolved with their employer when they bring these problems up as a group rather than as individuals.
-
The Boston Celtics are the most successful team in professional basketball history. Teams led by Bill Russell, Larry Bird, and Kevin Garnett have won a total of 17 NBA championships. The Celtics are...
-
Briefly explain the DHCP lease process. What packets are sent and when are they sent? (5 marks) Question 2 any three advantages of IPv6 over IPv4? How many classes are there in IPv4 and what is the...
-
1. Jolie Company has shipped $500 of goods to China Co., and China Co. has arranged to sell the goods for Jolie. Identify the consignor and the consignee. Which company should include any unsold...
-
Compute the minimum number of TCP segments required to open a connection, send an HTTP request and response message, and close the connection if the HTTP response message must be fragmented across...
-
Consider a $2^{2}$ factorial experiment with factors A and B. Show that $I N T(A, B)=I N T(B, A)$. That is, the interaction is symmetric in $\mathrm{B}$ and A.
-
Peachtree Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by Peachtree Delivery Service during February: 1. Received cash from owner as...
-
Macy Pharmacy has a project which has the following cash flows. Year 0 -$200,000 Year 1 = $50,000 Year 2 $100,000 Year 3 $150,000 Year 4 $40,000 = Year 5 $25,000 = The cost of capital is 10%. What is...
-
Harper Morgan owns White Mountain Assessments in Laconia, New Hampshire. The standard workweek is 40 hours. For the weekly payroll ending September 9, 2022, checks dated September 14, 2022, complete...
-
Dinner today will be a debate, probably involving takeout. After a day's work, who wants to go to the supermarket, go home, and cook. These remains a nagging questions for each families and...
-
Marquis Company uses a weighted - average perpetual inventory system and has the following purchases and sales: Date Activities Units Acquired at Cost Units Sold at Retail August 2 Purchase 1 0 units...
-
Listed below are some identifying characteristics of organizations. Type a "X " in the appropriate column(s) to indicate which characteristics apply to each type of organization. Some characteristics...
-
What is biological extinction (extinction)? What is an endemic species and why are such species vulnerable to extinction? Define and distinguish between the background extinction rate and mass...
-
Question 4 On August 1, 2026, Bullock Company borrowed $27,000 from a bank on an 8%, 7-month note payable. Bullock Company borrowed $60,000 from a bank on February 1, 2027 on a 5%, 11-month note...
-
Shalit company uses job order cost system and has established a predetermined overhead application rate for the current year of 150% of direct labor cost,based on budgeted overhead of $1800000 and...
-
Driverless cars will soon be available in the market. Discuss whether this technological development would decrease wages and employment according to the views of David Autor
-
QUESTION 9 HC-O-C-R R-C-O-CH HC-O-P-O-CH-CH-NH3* O || O a. Phosphatidic acid, Serine O b. Lysophosphatidic acid, Serine, Free FA O c. Lysophosphatidylserine, Free FA O d. 2 Free FAs, Serine, Glycerol...
-
Look at the various measures of poverty in 2009 for several countries in Table 21P-3. (The data are provided by the World Bank.) a. Rank the countries from the country with the highest inequality to...
-
You just spent $40 on a new movie for your collection. You would have preferred the directors cut but discovered when you got home that you bought the theatrical version. The store you bought the...
-
At the website stickK.com (started by one of the authors of this book), you can sign up for a contract in which you promise to meet certain weight-loss targets each week, and forfeit money that you...
-
Fill in the blanks to make the following statements correct. a. On a graph with Y on the vertical axis and X on the horizontal axis, the slope of a straight line is calculated as ___________. b. In...
-
The following diagram describes the hypothetical demand and supply for canned tuna in Canada in 2019. a. Suppose the price of a can of tuna is $4.00. What is the quantity demanded? What is the...
-
Fill in the blanks to make the following statements correct. a. The term quantity supplied refers to ___________ sales by producers, whereas quantity exchanged refers to ___________ sales by...
Study smarter with the SolutionInn App