• The company’s credit department should not take customer payments or have any other cash-handling responsibilities. For example, if a credit department employee also handles cash, the company would have no separation of duties. The employee could pocket money received from a customer. He or she could then label the customer’s account as uncollectible, and the company would stop billing that customer. The employee may be able to cover his or her theft.

 

Record the following transactions for Summer Consulting. Explanations are not required.

Apr. 15	Provided consulting services to Bob Jones and billed the customer $1,500.
18	Provided consulting services to Samantha Cruise and billed the customer $865.
25	Received $750 cash from Jones.
28	Provided consulting services to Regan Taylor and billed the customer $625.
28	Received $865 cash from Cruise.
30	Received $1,375 cash, $750 from Jones and $625 from Taylor.

 

 

 

 

 

Answer rating: 100% (QA)

Following are the journal entries for Summer Consulting Date Account Dr Cr Accounts Receivable Jones ... View the full answer