A small medical supply company sells cash only, the cash sale procedure involves several steps:-The sales clerkprepares apre-numbered sales invoice in triplicate. The sales clerk takes copy 1 and 2 together with the payment and present them to the cashier.The cashier validates the original copy and gives it to the customer.The third copy of the sales invoice staysin the invoice book when the invoice book has been depleted all 3rdcopy of the invoices is filed in the sales office. “by invoice books”.At the end of each day the cashier prepares a Sales summary, a deposit slip in duplicate and counts the cash. He or she takesthe cash tothe Bank and deposit it.The cashier retains a copy of the deposit slip the other copy is validated by the bank.The cashier then gives the accountant the sales summary, the 2nd copy of the invoices and the validated deposit slip.The accountant agrees the numbers prepare the journal entryFiles the documents as followsSales summaries by dateInvoices by numberDeposit slip by dateJournal vouchers by number RequiredPrepare a document flowchart for the processeWhat weakness in the controls do you see? List themSuggest enhancements to the internal control

The documented flowchart will be as follow: Sales Clerk ↦ Triplicate Invoice ↦ Customer (takes…

Answered: A small medical supply company sells…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A small medical supply company sells cash only, the cash sale procedure involves several steps:-

The sales clerkprepares apre-numbered sales invoice in triplicate. The sales clerk takes copy 1 and 2 together with the payment and present them to the cashier.
The cashier validates the original copy and gives it to the customer.
The third copy of the sales invoice staysin the invoice book when the invoice book has been depleted all 3^rdcopy of the invoices is filed in the sales office. “by invoice books”.
At the end of each day the cashier prepares a Sales summary, a deposit slip in duplicate and counts the cash. He or she takesthe cash tothe Bank and deposit it.The cashier retains a copy of the deposit slip the other copy is validated by the bank.
The cashier then gives the accountant the sales summary, the 2^nd copy of the invoices and the validated deposit slip.
The accountant agrees the numbers prepare the journal entry

Files the documents as follows

Sales summaries by date

Invoices by number

Deposit slip by date

Journal vouchers by number

Required

Prepare a document flowchart for the processe
What weakness in the controls do you see? List them
Suggest enhancements to the internal control

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