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Sales and Accounts Receivable
A sample of weekly sales invoices shall be analyzed from the sales
report by product category. All sales are on account. Sales are
classified into four product
categories: cosmetics, skin care, fragrance, and personal care. Charges
to customer accounts should be dated with the date of shipment.
Sales invoices are prepared in batches on a daily basis using
numbered sales invoices. Sales invoice numbers are automatically
generated by the company’s
computer system. The accounts receivable clerk does not have
appropriate computer rights to override the computer-generated
invoice number. Upon
preparing sales invoices, the accounts receivable clerk verifies that the
first invoice number of the batch is consistent with the last invoice
number of the
previous batch. Inconsistencies or skipped sales invoice numbers are
investigated and resolved before new sales invoices are prepared. The
items shipped are
compared to the items billed for proper quantity, price, and other sales
order terms.
The accounting department supervisor compares and reconciles a
copy of the daily sales invoice batch report to the daily accounts
posting report indicating the
individual accounts. The daily account posting report is prepared and
sent by the accounts receivable department. Discrepancies are
investigated and resolved
to help assure that the customer subsidiary accounts are posted for the
same total amount posted to the control account.
At the end of each month, the total of the trial balance of customer
account balances (prepared by the accounts receivable department)
are reconciled to the
general ledger control account by the accounting department
supervisor.
Sales invoice batches are dated with the date of shipment, and totals
of each batches are accumulated each month and recorded in the
accounts receivable