Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by...
Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account.
You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns.
Respond to the following in a minimum of 175 words:
- What would you do, and how would you document your decision?
Homework Answers
The above example is case of embezzelment of account receivables, the amount collected are written of as sales return by generating fake credit memos which means there is no return by customers so as per question there will be no additional inventory in warehouse. So to reduce the risk of embezzelment in future its important to take necessay steps by managment like to allocate work between 2 or more persons , proper supervisions over sales return and conducting training classes for employees regarding this job profiles.
I recommend to digitalized the process of collection of account receivables like through bank or some other payment applications rather than cash. Also ensure that credit memo entry is always made only by approving designated authorisations or persons hired for this after checking the returned goods.
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Credit memos are created when a product is returned. Credit
memos reduce A/R (accounts receivable) by...
Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by...
Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account. You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns. Respond to the following in a minimum of 175 words: What...
Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by...
Credit memos are created when a product is returned. Credit memos reduce A/R (accounts receivable) by crediting the account, and it writes off the invoice. This also records a debit to the Sales Returns and Allowances account. You have noticed that the A/R clerk has created an abnormally high number of credit memos. You also notice the inventory does not reflect the additional inventory resulting from the sales returns and allowances. What would you do, and how would you document...
A company received a credit memorandum for $100 from a supplier for defective product returned
A company received a credit memorandum for $100 from a supplier for defective product returned. Using a periodic inventory system, this transaction would be recorded with a credit to the _______ account. Click the answer you think is right. purchases returns & allowances merchandise inventory purchases
Only part c Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Advertising Expense Buildings Cash...
Only part c
Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Advertising Expense Buildings Cash Casuality Loss from Vandalism Cost of Goods Sold Depreciation Expense Dividend Revenue Equipment Freight-In Freight-Out Income Summary Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Land Loss on Disposal of Plant Assets Maintenance and Repairs Expense Notes Payable Operating Expenses Owner's Capital Owner's Drawings Prepaid Insurance Property Tax Expense Property Taxes Payable Purchase Discounts Purchase Returns and Allowances Purchases Rent Expense Salaries and...
At the end of May, the sales journal of Mountain View appears as follows. Assume beginning...
At the end of May, the sales journal of Mountain View appears as follows. Assume beginning inventory balance for May to be $9,546. Date Account Debited Invoice Number PR Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. May 6 Aaron Reckers 190 3,020 2,295 10 Sara Reed 191 2,080 1,716 17 Anna Page 192 926 544 25 Sara Reed 193 370 218 31 Totals 6,396 4,773 Mountain View also recorded the return of defective...
ACR7 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receivable and...
ACR7 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger Balances related to both the general ledger and the subsidiary ledgers for Jeter are indicated in the working papers presented below. Also below are a series of transactions for Jeter Co for the month of January Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price GENERAL LEDGER Account January 1...
Reference the narrative for Figure 3-12(picture 1) to complete picture 2 the missing labels and data flows. ...
Reference the narrative for
Figure 3-12(picture 1) to complete picture 2 the missing labels and
data flows.
3.12 Charting, Inc., a new audit client of yours, processes its sales and cash receipts documents in the following manner: 1 Payment on account. Each morning a mail clerk in the sales department opens the mail. The mail clerk prepares a remittance advice (showing customer and amount paid) if one is not received. The checks and remittance advices are then for warded to...
Any help would be appreciated! All required for answer is there. These transactions need to be journalized in the following accounts: Cash, Accounts Receivable, Inventory, Store Supplies, Offi...
Any help would be appreciated! All required for answer is
there.
These transactions need to be journalized in the following
accounts: Cash, Accounts Receivable, Inventory, Store Supplies,
Office Supplies, Office Equipment, Notes Payable, Accounts Payable,
F. Stone, Capital, Sales, Sales Discounts, Costs of Goods Sold, and
Sales Salaries Expense.
- Also need the following accounts receivable ledger accounts:
Carl Cole, Dale Dent, and Gary Glen.
- Open the following accounts payable ledger accounts: Able
Company, Best Company, More Company, and...
Please try to keep the same format! Problem 7-04A Selected accounts from the chart of accounts...
Please try to keep the same format!
Problem 7-04A Selected accounts from the chart of accounts of Blossom Company are shown below. 101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable The cost of all merchandise sold was 60% of the sales price. During January, Blossom completed the following transactions. Jan. 3 Purchased merchandise...
Only part c
Accounts Payable Accounts Receivable Accumulated Depreciation-Buildings Accumulated Depreciation Equipment Advertising Expense Buildings Cash Casuality Loss from Vandalism Cost of Goods Sold Depreciation Expense Dividend Revenue Equipment Freight-In Freight-Out Income Summary Insurance Expense Interest Expense Interest Payable Interest Revenue Inventory Land Loss on Disposal of Plant Assets Maintenance and Repairs Expense Notes Payable Operating Expenses Owner's Capital Owner's Drawings Prepaid Insurance Property Tax Expense Property Taxes Payable Purchase Discounts Purchase Returns and Allowances Purchases Rent Expense Salaries and...
ACR7 (Perpetual Method) Jeter Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger Balances related to both the general ledger and the subsidiary ledgers for Jeter are indicated in the working papers presented below. Also below are a series of transactions for Jeter Co for the month of January Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price GENERAL LEDGER Account January 1...
Reference the narrative for
Figure 3-12(picture 1) to complete picture 2 the missing labels and
data flows.
3.12 Charting, Inc., a new audit client of yours, processes its sales and cash receipts documents in the following manner: 1 Payment on account. Each morning a mail clerk in the sales department opens the mail. The mail clerk prepares a remittance advice (showing customer and amount paid) if one is not received. The checks and remittance advices are then for warded to...
Any help would be appreciated! All required for answer is
there.
These transactions need to be journalized in the following
accounts: Cash, Accounts Receivable, Inventory, Store Supplies,
Office Supplies, Office Equipment, Notes Payable, Accounts Payable,
F. Stone, Capital, Sales, Sales Discounts, Costs of Goods Sold, and
Sales Salaries Expense.
- Also need the following accounts receivable ledger accounts:
Carl Cole, Dale Dent, and Gary Glen.
- Open the following accounts payable ledger accounts: Able
Company, Best Company, More Company, and...
Please try to keep the same format!
Problem 7-04A Selected accounts from the chart of accounts of Blossom Company are shown below. 101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 414 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable The cost of all merchandise sold was 60% of the sales price. During January, Blossom completed the following transactions. Jan. 3 Purchased merchandise...
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