Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

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Chapter 4, Problem 12DQ

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Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

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Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented?

What would a credit manager do if a sales order received caused a customer to exceed its credit limit?

1. What does it mean to say that internal control has limitations and what are these limitations? 2. Provide an appropriate response based on the following scenarios. Assume that the accounting clerk posts a customer’s payment for the wrong amount, giving the customer credit for less than he or she actually paid. How will this error be detected? How might this error have been prevented? Assume that the employee who opens the mail steals a customer payment. How will this theft be detected? How might this theft have been prevented? 3. What is petty cash and what purpose(s) does it serve? 4. What types of controls should be in place to make sure people in the office don't just take from petty cash (for their own personal use) whenever they feel like it? In your opinion, what is an appropriate amount to have in petty cash? 5. Prepare the necessary journal entries for each of the following: (a) On March 1, issued a check to establish a petty cash fund of $1,410 (b)…

Answer 2

Question

Chapter 4, Problem 12DQ

To determine

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

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Answer 3

Question

Chapter 4, Problem 12DQ

To determine

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

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Answer 4

Question

Chapter 4, Problem 12DQ

To determine

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

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Answer 5

Chapter 4, Problem 12DQ

To determine

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

Answer 6

Chapter 4, Problem 12DQ

To determine

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

Answer 7

Chapter 4, Problem 12DQ

To determine

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

Answer 8

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Answer 9

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Answer 11

Ch. 4 - Prob. 1RQ Ch. 4 - Prob. 2RQ Ch. 4 - What function does the receiving department serve...Ch. 4 - Prob. 4RQ Ch. 4 - Prob. 5RQ Ch. 4 - Prob. 6RQ Ch. 4 - Prob. 7RQ Ch. 4 - Prob. 8RQ Ch. 4 - Prob. 9RQ Ch. 4 - Distinguish between an edit run, a sort run, and...

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

Solution Summary: The author explains that sales order procedures include a thorough systematic procedure for sale of goods in which receipt of order, credit approval, billing, shipping, warehousing and recording in accounts receivables ledgers and

Explain whether a sales clerk should be authorized to override the denial of customer credit, if such denial is concluded by an automated credit checking function. Also, explain the circumstances when override can take place.

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