Chapter 5, Problem 5.23EX

(a)

To determine

Computerized Accounting Systems

Computerized Accounting System is used by all the forms of the companies for its three main advantages over manual systems. They are:

1. It simplifies the record keeping process by recording transactions in electronic journals or forms and simultaneously posting them to the respective ledgers.

2. This system is more accurate compared to the manual one.

3. It provides the management about the status of accounts (balances) that helps the management in proper decision making.

E-Commerce

 Use of internet in performing the business transactions is called e-commerce.

To identify: The kind of e-commerce application described by the Company A.

(b)

To determine

To provide: The journal entry for the transaction.

(c)

To determine

To explain:  The type of special journal to be used to record this sales transaction.

(d)

To determine

To explain:  The type of electronic form to be used to record this sales transaction.

(e)

To determine

To explain: Would it be appropriate for Company A to use special journals or electronic forms for this sales transaction.