You have recently been hired as a book-keeper of an SME (Small and medium size) enterprise. Using a case study company in an industry of your own choice: Reflect how the case study company you have selected for purposes of this question the process of developing and maintaining books of original entry particulary with regard to Credit sales as documented in sales invoices.

Q: Which of the following situations may give rise to unearned revenue? Select one: a. Providing trade…

A: The Unearned revenue is the revenue not earned yet but has been received in cash for future service.…

Q: The business needs to record the trade discount in the book of account”. Question Do you agree…

A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…

Q: In a system like QuickBooks Online, when should you create an invoice? a. When a customer…

A: There are two ways recording sales Transaction in Quick books.   1. If customer Do not pay at time…

Q: CASE SUMMARY: Retailers commonly track customer's shopping patterns and target them with special…

A: Now it becomes a trend to track the customer's shopping pattern behavior. So that the company can…

Q: What error conditions need to be addressed? (What is an error condition?) For each, what do you…

A: Auditor is the independent professional who is CPA certified and has immense knowledge about the…

Q: Which of the following will be the Correct source document assuming that your business received…

A: The various documents are prepared to be provided to customer or received from supplier.

Q: What is the billing and collection process flow? Group of answer choices 1. If the customer is a new…

A: Billing process flow involves many steps like setting up the product code then setting up customer…

Q: Some business transactions purchase goods and services from the seller, on credit. The buyer of…

A: Purchase of Merchandise on Account - Purchases on Accounts means Inventory purchase without paying…

Q: You are employed as an accountant for Innovative Computing. Your company is in the process of…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: SOPP of XYZ Limited The sales department receives the unstandardised sales order since customer…

A: Internal control weakness refers to a situation where implemented internal controls are not applied…

Q: From the following examples, select which one is a transaction. a. a seller receiving payment from a…

A: Introduction : In simple words, transaction refers to a commercial activity in which two independent…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: a) How a company handles its credit accounts, including methods of invoicing and collecting past-due…

Q: Larry's Landscaping Services has extended Net 30 terms to his new customer, Mahoney's Mugs. What…

A: Invoice is a document that proves the transaction between a buyer and a seller.  It specifies the…

Q: From the following list, identify which items are considered original sources: prepaid insurance…

A: Source documents:  The documents which contain evidence of accounting data to record the…

Q: As the new staff person in your company’s treasury department, you have been asked to conduct…

A: International Financial Reporting Standards means accounting standards issued by International…

Q: 1. What would a credit manager do if a sales order received caused a customer to exceed its credit…

A: The credit manager should disapprove the sales order as it will increase the collection period…

Q: Which of the following transactions does the journal entry above belong to?      a) Purchase…

A: goods purchased are always debited. Liability account are always credited VAT to be deducted is to…

Q: dentify the items from the following list that are likely to serve as soùrce documents. (You may…

A: Source documents: It is the document which is a proof that a transaction has taken place. It is the…

Q: Design a report to assist in managing credit sales and cash collections. d) What types of journals,…

A: c.  Design a report to assist in managing credit sales and cash collections To assist with managing…

Q: For each transaction, suggest two internal controls you would implement. Justify your response.…

A: Internal Control: Internal control is a method used by a company's board of directors, management,…

Q: plain why it is important for a company to keep track of how much money in discounts is given out?…

A: . Percent of cash discount since 3/15, n/45 is the credit term between the seller and buyer which…

Q: a. Based on the above sales system of Adel & Co, suggest SIX tests of controls the auditor could…

A: Test of Controls: It is the type of audit procedure that the Auditor performs in order to evaluate…

Q: Which of the following is most effective to show that you really know your target market? O…

A: If one has to be successful then knowledge of target market is the ore requisite and often the…

Q: Following describes the credit sales procedures for clothing wholesaler that sells name-brand…

A: It means all the policies and procedures (internal controls) adopted by the management of the…

Q: Feinman Computers sells desktop computer systems that it manufactures from parts and software that…

A: REA Model: REA model establishes the relation between resource, event and agents. REA model serves…

Q: A friend owns a business that extends credit to its customers.  The friend has asked you to helps…

A: Estimation of uncollectible accounts involves company creating a provision for the percentage of…

Q: You are working as an Accounts Receivable Officer in Super Mart Store. Your Store manager asked you…

A: Data flow Diagram of the transaction as below…

Q: Muscat Supplies LLC is trading wholesale and retail merchandise business in Sohar. The business have…

A: Suppliers sells the goods to Muscat Supplies LLC. So it is purchases for Muscat Supplies LLC.…

Q: You were hired to assist Oman based Company in designing an accounting system for Oman Co., Ltd. has…

A: We will answer only first three subparts of the question as it is not specified which sub part is to…

Q: Which of the following will be not be called as Source Document of a Business? a. Debit note raised…

A: Source document contains the information about a transaction like, date, amount, party, etc. Debit…

Q: When a customer returns a product to Hartville Equipment that the customer purchasedon account,…

A: When a customer returns a product to Hartville Equipment that the customer purchased on account,…

Q: Given the following business rules, construct an ER diagram so each rule is captured for the…

A: Given the following business rules, construct an ER diagram so each rule is captured for the…

Q: iler of sailing boats, negotiating the payment delays with your providers and clients. How can you…

A: Company has to maintain the sufficient cash to operate and maintain the company without which…

Q: d contrast a manual accounting system with a computerized accounting system for process vendors…

A: manual accounting system requires the acting accountant or bookkeeper to post business transactions…

Q: What is the primary reason why most businesses want to sell on a credit basis if it is preferable…

A: Businesses can sell on a cash-only basis or collect advance payments from customers to manufacture…

Q: The sales department receives the unstandardised sales order since customer orders are mailed,…

A: The cash receipts procedure includes receipt of cash, recording cash receipts, depositing the cash,…

Q: Which of the following is TRUE with regards to establishing credit limits for customers? O It is…

A: Solution: The true statement with regards to establishing credit limits for customers are as under:…

Q: Required Given that prudence is the main consideration, discuss under what circumstances, if any,…

A: Accrual Basis of accounting refers to the accounting, where the transactions are recorded as and…

Q: Wilcox Electronics uses a sales journal, a purchases journal, a cash receipts journal, a cash…

A: Sales journal records sales on credit. Cash receipt journal records all cash receipt transactions.…

Q: Why should the person in charge of cash receipts not also be in charge of keeping the aAssume you're…

A: It tells about Periodic Inventory vs. Permanent Inventory: Periodic Inventory System refers to the…

Q: how would you check the information provided by an applicant for credit at a department store? by a…

A: WHAT  IS CREDIT ? Labor and products can be paid for forthright or on conveyance, or are provided…

Q: If you are a jewelry store, what inventory system is applicable to you? How about for a hardware…

A: Perpetual is the inventory system that would most likely be used by a jewelry store. In the…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: Company provide credit to customers and discount to customers to increase sales.

Q: Effective credit management involves establishing credit standards for extending credit to…

A: The question is based on the concept of Financial Management. As per the Bartleby guidelines we are…

Q: Discuss the trade-off in choosing to update the customer credit, should the sales clerk ever be…

A: The credit limit of each customer is decided by the credit manager based on the customer's credit…

Q: Explain the primary goal of maintaining a cash book. Use a case study company of your own choice to…

A: The answer is stated below:             Note: Answering the first question as there are multiple…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: Accounts receivable: When the seller sold the goods to the buyer on a credit basis of the specified…

Q: What controls should exist for inventory movements at the local store level and the central office?…

A: Audit: An audit is defined as: the independent examination of and expression of opinion on the…