Question in image Adventure Gears is a retail business selling outdoor entertainment goods such as tents, sleeping bags, camping furniture,etc. In addition to having stores across Australia, AG uses a website to sell goods online. In order to buy, online customersmust have previously registered and created a Jays customer account with a unique username and password.Below is the narrative of the Receive and Record payment process within its Revenue Cycle.Receive and record paymentThe computer asks the customer to enter their credit card payment details, then sends a payment validation request to thebank. On receipt of the payment request, the bank's computer assesses whether to approve or decline the paymentrequest. The bank's computer sends an approved or declined notification to Jays computer. This process normally takesless than a minute. On receipt of the notification from the bank, the computer changes the status to '2' (paid and awaitingshipment). Declined payments are uncommon, but if one is encountered the sales order status is changed to '9' (cancelled),the inventory database is updated to show that the products are no longer allocated to a sales order, and the customer isadvised via email that their sales order has been cancelled due to a declined payment. At 5 am each morning, the computerextracts any status '2' (paid and awaiting shipment) sales orders, changes the sales order status to 3' (shipping underway)and then creates two copies of a .pdf shipping notice for each sales order, which is emailed to the shipment manager in theshipping department.Required:(a) Identify three risks typically encountered when receiving and recording payments.(b) Analyse the degree of exposure to each of these risks for the receiving payments process at Adventure Gears.(c) Determine what common controls are present in the receiving payments process at Adventure Gears.

(a) Identify three risks typically encountered when receiving and recording payments. (b) Analyse the degree of exposure to each of these risks for the receiving payments process at Adventure Gears. (c) Determine what common controls are present in the receiving payments process at Adventure Gears.

(a) Identify three risks typically encountered when receiving and recording payments. (b) Analyse the degree of exposure to each of these risks for the receiving payments process at Adventure Gears. (c) Determine what common controls are present in the receiving payments process at Adventure Gears.

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter2: Analyzing Transactions Into Debit And Credit Parts

Section2.3: Analyzing How Transactions Affect Owner’s Equity Accounts

Problem 1WT

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