Accounting Information Systems
Accounting Information Systems
9th Edition
ISBN: 9781133934400
Author: James A. Hall
Publisher: Cengage Learning
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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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Students have asked these similar questions
Discuss the trade-off in choosing to update the customer credit, should the sales clerk ever be authorized to override the decision? If so when?
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?

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Accounting Information Systems

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