Question

At Kingston Industries, the revenue processes are conducted by five employees. The five employees are the sales clerk, warehouse clerk, accountant 1, accountant 2, and the collection clerk. A description of their duties is as follows: A. The sales clerk receives customer orders by phone. She prepares a four-copy sales order form. She files one copy, one copy goes to the warehouse clerk, one copy goes to accountant 1, and one copy is mailed to the customer. B. After receiving a sales order, the warehouse clerk prepares a packing slip, takes the proper items from the warehouse, and ships them with the packing slip enclosed. The sales order is stamped with the ship date, and the shipping log is updated. The sales order is filed by customer number. c. After receiving the sales order from the sales clerk, accountant 1 reviews the customer records and either approves or disapproves customer credit. If he approves the customer's credit, he stamps the sales order approved" and forwards it to accountant 2. Accountant 1 prepares a three- copy invoice. One copy is mailed to the customer, one copy is forwarded to accountant 2, and one copy goes to the collection clerk. D. Accountant 2 matches the approved sales order to the invoice and files these by customer number. E. After receiving a copy of the invoice, the collection clerk posts the sale to the sales journal and the accounts receivable subsidiary ledger. Daily totals from the sales journal are sent to accountant 1, and she posts these sales summaries to the general ledger. E A mail clerk forwards customer checks to the collection clerk. The collection clerk stamps the check "For Deposit Only" and records it in the accounts receivable subsidiary ledger. The check is also recorded in the cash receipts journal by the collection clerk. The collection clerk deposits checks in the bank account weekly. A weekly summary of cash receipts is forwarded to accountant 2. and

Answer 1

62) At / Kingston industries, conducted by the five the revenue employees. prownes are The five employees are the sales cluk ware house cheer, accountant 1, accountant 2, and the collection clark, a description of their dullil is as followd. Sales process: Sales received cleak a salees ordena Wochoux Accountance i Ships the Approved the credit and prepare invoice sew to Collection Check Acwuntant 2 Vertified and filed Enter in Broks the entries of acounte the centone number and matching with the invoice

Collection proce! - Accountant Debtors given to list to be Collection people followup with Debtors Collect the cheets Deposit - Give details the to Accountant

New process, Sata) сосемак - the First after getting Celtomer the the order from sales person to be hand over to production marca with Discess management for the appovaly, price fiction, Discuss with penchale department availability of paw mafuiala Accept the older Take the purchase ades production of goods prepare invoice Accountance

Am I clentification of weaknesses:- In sales process the order received not suggestable better opt for Email avoid the discerpencis if any. by phone ite system to & Shipping by befole accountance 2 warehowing cleck without Shipping invoice need to be s not required because invoice prepared the invoice can match with the sale can older be done by collection cleck. * There are no internal controle in proper because after getting the order the production department Should accelysis the rate, Quantity before giving acceptance to the order * there ell no process to inform to the raw the availability of material department the roquered raw to be sold regarding material for the product

kleaknesses in the collection prowns: * there is no system of following up the Homers to collect the paymente by dee date. The of monitoring system of regarding collection a the proceeds ill not then. the checks Collected il dipating weekly once it is better (1 once in the cheele to deposit two days. for everyday Collection bu! Hail Cute cultomer check collection ctecte Account recevable ledger Deposit in the bank Sent to accountankez Entered in Book of accounte