You have been tasked with documenting the cash receipts system at Atomic Lumber. The Controllers narrative of
Question:
You have been tasked with documenting the cash receipts system at Atomic Lumber. The Controller’s narrative of the system follows:
Customer payments include cash received at the time of purchase and payments received in the mail. At day’s end, the treasurer endorses all checks and prepares a deposit slip for the checks and the cash. A clerk deposits the checks, cash, and deposit slip at the local bank each day.
When checks are received as payment for accounts due, a remittance slip is included with the payment. The Treasurer sends this to accounts receivable. Data from the remittance slips are entered into the computer, and the accounts receivable database is updated. The remittance slips are stored in a file drawer by date.
Every week, accounts receivable generates a cash receipts report and an aged trial balance using the accounts receivable ledger. The cash receipts report is sent to the General Manager for review. A copy of the aged trial balance is sent to the credit and collections department for assessment.
Required
Prepare a document flowchart for the cash receipts system at Atomic
App.diagrams.net is good use to make flowcharts
Managerial accounting
ISBN: 978-0471467854
1st edition
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin