Short Exercises Ensuring internal control over the collection of receivables s8-

Question

Short Exercises Ensuring internal control over the collection of receivables s8- Lea Consider a company docsperform this job, what can a credit department employe do to hurt the company? internal control over receivables collections. What job must be withheld fronm s credit department in order to safeguard its cash? If the credit department s$-2 Recording credit card and debit card sales urants do a large volume of business by credit and debit cards. Suppose Summer d. and Castles Resort restaurant had these transactions on January 28, 2016: Sand National Express credit card sales ValueCard debit card sales S 10,800 10,000 Requirements 1. Suppose Summer, Sand, and Castles Resort's processor charges a 296 fee and deposits sales net of the fee. Journalize these sales transactions for the restaurant. 2. Suppose Summer, Sand, and Castles Resorts processor charges a 2% fee and depos- its sales using the gross method. Journalize these sales transactions for the restaurant. $83 Applying the direct write-off method to account for uncollectibles Susan Knoll is an attorney in Los Angeles. Knoll uses the direct write-off method to account for uncollectible receivables. At January 31, 2016, Knoll's accounts receivable totaled $18,000. During February she earned revenue of $21,000 on account and collected $23,000 on account. She also wrote off uncollectible receivables of $1,050 on February 29, 2016. Requirements L. Ule the direct write off method to journalize Knoll's write-off of the uncollectible receivables. 2. What is Knolls balance of Accounts Recivable at February 29, 20162 og a receivable previously written off -direct write-off method o iy yeles had trouble colleczing its account receivable from Shawna Brown. Collectinga lune 19, 2016, Gate City finally wrote off Brown's $700 account receivable. On 31, Brown sent a $700 check to Gate City t u he catries required for Gate City Cycles, assuming Gate City uses the write-off method.

Explanation / Answer

As per chegg's policy I am allowed to answer only the first question so please don't mind and ask other questions separately.

There must be a separation of duties. The employees who are in the credit card department should not be allowed to collect cash from the customers. Instead there should be a separate department of collecting cash from the customers. This will ensure that no fraud happens. Otherwise the credit card executive may collect the cash and still record it as an uncollectible. This may hurt the company.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.