Question

Most grocery stores use bar code scanning technologies that interface with cash registers used to process customer purchases. Cashiers use the scanners to read bar code labels attached to each product, which the system then uses to obtain unit prices, calculate transaction totals, including sales taxes, and update perpetual inventory databases. Similarly, cashiers scan bar codes on coupons or member discount cards presented by the customer to process discounts. Along with the scanning technologies, groceries use point-of-sale technologies that allow customers to swipe debit and credit cards for payment, while still maintaining the ability for customers to pay with cash. Read the requirements. Requirement a. Which financial statement accounts are impacted by the use of these technologies in a typical grocery store? (Select all that apply.) A. Sales Tax Payable C. Accounts payable DE. Revenue G. Inventory Ol. Furniture and Fixtures OB. Salaries OD. Cash OF. Sales discounts OH. Cost of Goods Sold J. Sales returns

Answer 1

(a) The Financial statement accounts impacted by use of bar code scanning technologies in a typical grocery store are :

A Sales Tax Payable

D Cash

E Revenue

F Sales Discounts

G Inventory

H Cost of Goods sold

J Sales Returns

(b) & (c)

Risks	How Bar Code Scanning Technology helps reduce risk
Calculation of amounts due from customer for all items purchased is inaccurate.	The system extends price times quantity and adds each extended amount to calculate the total sales price,including sales tax due from the customer.
Coupons and discounts are incorrectly calculated.	The system retrieves coupon and discount information from the master file of promotions and discounts and automatically calculates discount amounts.
Invoices are not entered so that vendors can be paid	Items cannot be entered into Inventory without entering the invoice into Accounts Payable.
Not all inventory items taken by customer are included in the processing of the customer's purchase	As the system reads each bar code,it generates a sound to indicate to the cashier and customer that each product scanned has been captured by the system.
Reduction in inventory accounts for item sold is inaccurate.	The system tracks the number of units removed by product number , which is used to update perpetual inventory records.
Wrong unit price is used to process sale.	The system automatically retrieves the unit retail price from the approved price list master file.

Depreciation and wages are not calculated by scanning bar code. Hence 1st and 7th in the risk list are not risks which can be reduced by bar code scanning technology.