(L.OBJ. 1, 2) Explaining common types of receivables and designing internal controls for...

(L.OBJ. 1, 2) Explaining common types of receivables and designing internal controls for receivables [20—30 min]

Mail Plus performs mailing services on account, so virtually all cash receipts arrive in the mail. Gina Star, the owner, has just returned from a meeting with new ideas for the business. Among other things, Star plans to institute stronger internal controls over cash receipts from customers.

Requirements

1. What types of receivables are most likely to be collected by Mail Plus?

2. List the following procedures in the correct order.