One of two office clerks in a small company prepares a sales invoice for $4,300; however, the invoice is incorrectly entered by the bookkeeper in the general ledger and the accounts receivable subsidiary ledger as $3,400. The customer subsequently remits $3,400, the amount on the monthly statement. Assuming there are only three employees in the department, the most effective control to prevent this type of error is

A. Assigning the second office clerk to independently check the sales invoice prices, discounts, extensions, and footings and to account for the invoice serial number.

B. Requiring that monthly statements be prepared by the bookkeeper and verified by one of the other office clerks prior to mailing.

C. Using predetermined totals to control posting routines.

D. Requiring the bookkeeper to perform periodic reconciliations of the accounts receivable subsidiary ledger and the general ledger.

Question

Business

Leticia Roach

8 November, 02:34

One of two office clerks in a small company prepares a sales invoice for $4,300; however, the invoice is incorrectly entered by the bookkeeper in the general ledger and the accounts receivable subsidiary ledger as $3,400. The customer subsequently remits $3,400, the amount on the monthly statement. Assuming there are only three employees in the department, the most effective control to prevent this type of error is

A. Assigning the second office clerk to independently check the sales invoice prices, discounts, extensions, and footings and to account for the invoice serial number.

B. Requiring that monthly statements be prepared by the bookkeeper and verified by one of the other office clerks prior to mailing.

C. Using predetermined totals to control posting routines.

D. Requiring the bookkeeper to perform periodic reconciliations of the accounts receivable subsidiary ledger and the general ledger.

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Answers (1)

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Heath Reeves · Answer 1

Answer: C. Using predetermined totals to control posting routines.

Explanation: A regulation total if developed for the agreement to be posted, then it should be set side by side with total of items posted to personal accounts. Therefore, The most adequate way to avert this kind of error is by applying predetermined totals to control stating the daily cycle.

Therefore, the correct option in this case is (c)