Prepare the system flowchart for the cash receipts procedure.

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Subject: Accounting Information SystemQuestion: What would be the correct system flowchart for this given process: Accounts Payable and Cash Disbursement Process:Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice and a cash disbursement voucher are sent to the cash disbursement department, where a check is prepared and sent to the vendor. A copy of the check, the invoice, and the voucher are returned to the AP department and filed.

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Chapter 2, Problem 19P

To determine

Prepare the system flowchart for the cash receipts procedure.

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Subject: Accounting Information SystemQuestion: What would be the correct system flowchart for this given process: Accounts Payable and Cash Disbursement Process:Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice and a cash disbursement voucher are sent to the cash disbursement department, where a check is prepared and sent to the vendor. A copy of the check, the invoice, and the voucher are returned to the AP department and filed.

Good internal controls include upon receiving checks from customers by mail, a responsible employee should A. Add the checks to the daily cash summary B. Verify that check is supported by prenumbered sales invoices C. Prepare a duplicate listing of checks received D. Record the checks in the cash receipts journal

Credit is granted by a credit department. Once shipment occurs and is recorded in the sales journal, all shipping documents are electronically marked “recorded” by the accounting staff. Sales returns are presented to a sales department clerk, who prepares a prenumbered receiving report. Cash receipts received in the mail are received by a secretary with no record-keeping responsibility. Cash receipts received in the mail are forwarded unopened with remittance advices to accounting. The cash receipts journal is prepared by the treasurer’s department. Cash is deposited weekly. Statements are sent monthly to customers. Write-offs of accounts receivable are approved by the controller. The bank reconciliation is prepared by individuals independent of cash receipts record keeping. For each of the preceding 10 items, indicate whether the item represents an internal control strength for the sales and collection cycle. internal control deficiency for the sales and collection cycle. For…