The answer is true because without our tax maney we wouldnt have goods and services.
Answer:
1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.
⇒ documentation procedures
Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?
2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.
⇒ segregation of duties
One single person cannot be responsible for the whole process, since this creates a huge opportunity for fraud. Imagine if the person in charge of the inventory is also in charge of making new purchases, paying for them and reporting ending inventory. No company would be able survive one year, while the person in charge would get rich.
3. Several clerks at Great Foods use the same cash register drawer
⇒ establishment of responsibility
If everyone is allowed to collect money, no one can be responsible for any loss.
Answer:
Dec.31 Bad Debts Expense 27000
December 31 Balance Sheet Accounts Receivable 392400
Explanation:
Harris Company
Credit Sales for the current year $2700,000
Credit Losses = 1% of $ 2700,000= $ 27000
Add Allowance for Doubtful Accounts $ 30600 Cr
Required Adjustments $ 57,600 Cr
General Journal
Date Description Debit Credit
Dec.31 Bad Debts Expense 27000
Allowance for Doubtful Accounts 27000
December 31 Balance Sheet.
Accounts Receivable $450,000
Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)
Accounts Receivable 392400
On Monday and Tuesday, the process appears to be out of control.
<u>Explanation</u>:
- There are five days Monday, Tuesday,Wednesday, Thursday and Friday. Monday and Tuesday have weight up to 21. Wednesday weights up to 21.
- Thursday and Friday weigh up to 20. Except for Monday and Tuesday, all the days have packaged up to the value of 21. So Monday and Tuesday are the days that appear to be out of control.
- On checking the package for each day he came to know that Monday and Tuesday have process out of control.
