(a) Identify three risks typically encountered when receiving and recording payments. (b) Analyse the degree of exposure to each of these risks for the receiving payments process at Adventure Gears. (c) Determine what common controls are present in the receiving payments process at Adventure Gears.
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- Feinman Computers sells desktop computer systems that it manufactures from parts and software that thirdparty vendors provide. Customers are both private consumers and small businesses. Consumers pay cash or by credit card, but business customers buy on credit. A credit check is made of all new business customers before approving a line of credit. Sales are made online or by a hard-copy order document that customers mail or fax to the company.When a credit order is received, the sales clerk verifies inventory availability, prepares a sales order and sends the stock release copy to Willy, a warehouse employee who picks the goods and arranges shipment. Willy then prepares the bills of lading and shipping notices. Barb in the billing department receives the shipping notice from Willy and updates the inventory subsidiary ledger to account for the reduction in inventory. Barb files the stock release, prepares the invoice, and mails a copy of it to the customer. Barb then updates the sales…Answer the following questionsYou were hired to assist Oman based Company in designing an accounting system for Oman Co., Ltd. has developed a list of the journals, ledgers, reports and documents that he thinks Oman Co., Ltd. The company asks you to complete the following tasks:c) Design a report to assist in managing credit sales and cash collections.d) What types of journals, ledgers and blank forms for various documents ( Sales invoices, purchase orders etc)In a system like QuickBooks Online, when should you create an invoice? a. When a customer purchases goods or services and pays you in cash at the time of the sale b. When a customer purchases goods or services but does not pay you at the time of the sale c. When a customer purchases goods or services and pays you by check or credit card at the time of the sale d. When a customer purchases goods or services, but you don't want to record the sale as final
- How can a customer pay an emailed QuickBooks Online invoice via credit card? A. Send a message via the message feature with their credit card number B. Select Review and pay > Apply for account > Pay C. Print off a form and then enter and send their credit card details and authorization D. Select Review and pay > Enter payment details > PayLarry's Landscaping Services has extended Net 30 terms to his new customer, Mahoney's Mugs. What sales workflow would you recommend Larry use for Mahoney's? -Create Invoice > Receive Payment > Check Register -Create Sales Receipt > Bank Deposit -Create Invoice > Receive Payment > Bank Deposit -Create Sales Receipt > Receive Payment > Bank DepositMunchies Inc. is a business that offers meal plans to college students. Students, or their families, buy debit cards with fixed amounts that they can use to purchase food at more than 50 local restaurants. Munchies sells the cards to students using an online storefront and in several locations near major college campuses. The following paragraph describes the online card sale process:Customers enter their credit card information online and then the amount of purchase.Munchies’ software automatically checks the card number to determine that it is a valid credit card number; for instance, there are certain digits that indicate Visa cards. The software displays an error message if the number is not valid. The usual cause of these errors is typographical. Once the customer completes the card order screen, the software sends the data in an encrypted form to Munchies’ host computer. Periodically, the company’s accountant retrieves transactions from the server. This is done by clicking on the…
- Miranda Corp. received an order from a customer on October 1. The toys were shipped on October 15. The customer sent a check for full payment on November 5. Miranda received the check on November 10 and deposited it in the bank account. Miranda should record sales revenue related to this series of transactions on ___ .ABC Co. has a contract with Xero, a cloud-based accounting software platform for small- and medium-sized businesses. As the accountant of ABC, you use Xero to record transactions and generate reports. How would you account for the payments made to Xero?Complete a service blueprint for each of the following post office transactions. Use the service actions listed in the tables below each name of a transaction. a. Buy stamps from a machine. I Dispense stamps and change. II Receive and record cash amount. Customer actions line of information Contact person(s) line of visibility Backstage contacts line of internal interaction Support Customer actions line of information Contact person(s) line of visibility Backstage contacts line of internal interaction Arrive and wait in line if necessary. Support b. Buy stamps from a postal clerk. I Clerk fills order or suggests alternative if out of requested stamps. Clerk gives customer the stamps and collects money. II III Replenish stamps periodically. IV Verify cost does not exceed recorded cash amount. Arrive and wait in line if necessary Insert cash. Make a selection. Clerk calls next in line. Receive stamps and any change. Customer approaches clerk. Schedules are made. III IV Count change.…
- Pinnacle Consulting Company makes most of its sales and purchases on credit. It uses the five journals described in this chapter (revenue, cash receipts, purchases, cash payments, and general). Identify the journal most likely used in recording the postings for selected transactions indicated by letter in the T accounts, as follows:1. When a customer’s deposit is recorded using the Make Deposits window, Quickbooks creates a behind the scenes journal entry that will do what? A. Credit cash and debit checking B. Credit checking and debit undeposited funds C. Debit Checking and credit undeposited funds D. Debit cash and credit checking 2. How can you move your Quickbooks desktop company file, with all of your data, to a new computer? A. Create a portable file and restore it to a new system B. Condense the data file on the old computer to the drive space. Back up the file and then restored the condense data file to the new computer C. Install Quickbooks on the new computer, back up your computer file on the old computer and restore the file to the new system D. Export your company file to excel from the old computer, then copy this file over to your new computer.Apple Inc.’s iTunes® provides digital products, such as music, video, and software, which can be downloaded to portable devices such as the iPhone® and iPad®. Purchases from iTunes are made with credit cards that are on file with the credit card processing company.Such transactions are considered cash transactions. Once the purchases are made, consumers can download the requested digital products to their portable devices for their enjoyment and the charges will show up on their credit card bills.a. What kind of e-commerce application is described by Apple iTunes?b. Assume you purchased 12 songs for $1.25 each on iTunes. Provide the journal entry generated by Apple’s e-commerce application.c. If a special journal were used, what type of special journal would be used to record this sales transaction?d. If an electronic form were used, what type of electronic form would be used to record this sales transaction?e. Would it be appropriate for Apple to use either special journals or…