Question

Mail is delivered every day by noon to the mail room of Alex Corp, a privately-owned manufacturer. Customer payments are by check are enclosed in distinctive blue envelopes. The mail clerk separates those envelopes from all other mail. The clerk sends the unopened envelopes to the treasurer’s office. The treasurer opens the envelopes and compares the check amounts with the enclosed remittance advice. The treasurer endorses all checks, “For deposit”, prepares a 2-part list of all payments from customers, The treasurer prepares a deposit slip and encloses the endorsed checks in an envelope. She then takes the checks and deposit slip to the bank [across the street], which the bank stamps. She makes a photocopy the deposit slip and files it with the payment list by date. She sends copy 2 of the list, the remittance advices and the original deposit slip copy 2 to accounting. Accounting posts the listed customer payments to the accounts receivable sub-ledger and the bank deposit total to the cash receipts journal. The list, the remittance advices, and deposit slip are filed together by date. REQUIRED Flowchart the above procedure.

Use the correct flowchart box

Answer 1

RECEIPT OF MAIL SEPARATION OF BLUE ENVELOPES BY MAIL CLERK SENDING OF UNOPENED ENVELOPES TO TREASURER OPENING OF ENVELOPE & COMPARING CHECK AMOUNT WITH REMITTANCE ADVICE BY TREASURER ENDORSING OF CHECKS FOR DEPOSIT & PREPARATION OF 2-PART LIST BY TREASURER PREPARATION OF DEPOSIT SLIP & ENCLOSURE WITH CHECK BY TREASURER TAKING CHECK & DEPOSIT SLIP TO BANK BY TREASURER PHOTOCOPYING DEPOSIT SLIP & FILING WITH PAYMENT LIST BY TREASURER

SENDING COPY 2 OF LIST, REMITTANCE ADVICES & ORIGINAL DEPOSIT SLIP TO ACCOUNTING POSTING PAYMENT TO ACCOUNTS RECEIVABLE SUB-LEDGER & BANK DEPOSIT TOTAL TO CASH RECEIPTS JOURNAL BY ACCOUNTING FILING OF LIST, REMITTANCE ADVICES & DEPOSIT SLIP