Explanation Memo To: Store manager From: ......... Date: ......... Subject: The current system being followed at the store for maintaining the cash register has various loopholes. The system is based on assumptions and is insufficient in determining the correct balances at the end of the day and detecting the frauds if any, conducted by the employees. There is a possibility that it may be misused by future employees...

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN: 9781305654174

Author: Gary A. Porter, Curtis L. Norton

Publisher: Cengage Learning

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Question

Chapter 6, Problem 6.5DC

To determine

Introduction: Cash registers are used for maintaining and regulating the monetary transactions that take place each day. It includes all the information related to the total receipts of cash or withdrawal of cash taking place in the business.

To write: A cash memo to the manager of the store addressing the problems related to maintaining the cash receipts at the store and suggesting the different methods can be used to control the cash receipts.

Expert Solution & Answer

Chapter 6 Solutions

Financial Accounting: The Impact on Decision Makers

Ch. 6 - Prob. 6.3E Ch. 6 - Prob. 6.5E Ch. 6 - Prob. 6.1P Ch. 6 - Prob. 6.4MCP Ch. 6 - Prob. 6.1DC Ch. 6 - Prob. 6.2DC Ch. 6 - Prob. 6.5DC

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Similar questions

Describe the who, what, where, and how of the following scenario: A customer gives his purchase to a sales clerk, who enters the sale in a cash register and puts the money in the register drawer. At the end of the day, the sales clerk gives the cash and the register tape to the cashier.
The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a general journal, page 1. Assume the periodic inventory method is used. If using QuickBooks, record transactions using either the journal entry method or the forms-based approach as directed by your instructor. The chart of accounts is as follows: 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily the general journal entries to the general ledger. Write the owners name in the Capital and Drawing accounts. If using QuickBooks or general ledger, ignore Steps 2, 3, and 4. 5. Prepare a trial balance. 6. Prepare a schedule of accounts receivable (A/R Aging Detail report in QuickBooks) and a schedule of accounts payable (A/P Summary Detail report in QuickBooks). Do the totals equal the balances of the related controlling accounts?
The following transactions were completed by Hammond Auto Supply during January, which is the first month of this fiscal year. Terms of sale are 2/10, n/30. The balances of the accounts as of January 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Hammond Auto Supply does not track cash sales by customer. If you are using the form-based approach with QuickBooks or general ledger, select Cash Sales as the customer for all cash sales transactions. Required 1. Record the transactions for January using a sales journal, page 73; a purchases journal, page 56; a cash receipts journal, page 38; a cash payments journal, page 45; and a general journal, page 100. Assume the periodic inventory method is used. 2. Post daily all entries involving customer accounts to the accounts receivable ledger. 3. Post daily all entries involving creditor accounts to the accounts payable ledger. 4. Post daily those entries involving the Other Accounts columns and the general journal to the general ledger. Write the owners name in the Capital and Drawing accounts. 5. Add the columns of the special journals and prove the equality of the debit and credit totals on scratch paper. 6. Post the appropriate totals of the special journals to the general ledger. 7. Prepare a trial balance. 8. Prepare a schedule of accounts receivable and a schedule of accounts payable. Do the totals equal the balances of the related controlling accounts?

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