In the revenue and receipts cycle, a new customer wishes to purchase inventory on credit, at your shop. Select the first step that you will insist should be followed by your staff. a.Request a valid purchase order from the customer before processing the order.b.Create a correct purchase order, signed by the customer.c.Request that a credit application form be completed by the customer.d.Set up an accounts receivable account for the customer in the accounts receivable ledger.

The inventory control clerk examines the inventory records for items that must be replenished and prepares a two-part purchase requisition. Copy 1 of the requisition is sent to the purchasing department and Copy 2 is filed.Upon receipt of the requisition, the purchasing clerk selects a supplier from the valid vendor file (reference file) and prepares a three-part purchase order. Copy 1 is sent to  the  supplier,  Copy  2  is  sent  to  the  accounts  payable  department  where  it  is  filed temporarily, and Copy 3 is filed in the purchases department.A  few  days  after  the  supplier  ships  the  order,  the  goods  arrive  at  the  receiving department.  They are inspected, and the receiving clerk prepares a three-part receiving report describing the number and quality of the items received. Copy 1 of the  receiving  report  accompanies  the  goods  to  the  warehouse,  where  they  are secured and the receiving report is filed. Copy 2 is sent to inventory control, where the clerk posts it to the inventory records and files the document.  Copy 3 is sent to the accounts payable department, where it is filed with the purchase order.A day or two later, the accounts payable (AP) clerk receives the supplier’s invoice (bill) for the items shipped. The clerk pulls the purchase order and receiving report from  the  temporary  file  and  compares  the  quantity  ordered, quantity  received,  and the  price  charged.  After reconciling the three documents,  the  clerk  enters  the purchase in the purchases journal and posts the amount owed to the accounts payable subsidiary account.On the payment due date, the AP clerk posts to the AP subsidiary account to remove the liability and prepares a voucher authorizing payment to the vendor. The voucher is then  sent  to  the  cash  disbursements  clerk.  Upon receipt of  the  voucher,  the  cash disbursements clerk prepares a check and sends it to the supplier. The clerk records the check in the check register and files a copy of the check in the department filing cabinet.

Assuming a periodic inventory system is used, the entry to record a purchase of merchandise on credit includes:Multiple Choicea debit to Purchases and a credit to Accounts Payable.a debit to Accounts Payable and a credit to Purchases.a debit to Purchases and a credit to Accounts Receivable.a credit to Purchases and a credit to Accounts Payable.

Before goods are shipped on account, a properly authorized person mustSelect one:a.approve creditb.approve the journal entryc.prepare the sales invoiced.verify that the unit price is accurate

When a customer purchases goods using the company's own retail credit card, the entry includes aSelect answer from the options belowcredit to Accounts Receivable.debit to Sales.debit to Cash.debit to Credit Card Receivable.

Select the correct alternative to complete the sentence pertaining to the revenue and receipts cycle. An Internal Sales Order is authorised by signature by the credit controller before being sent to the warehouse. The objective of this control is to ensure that ______.a.the sale is made to a customer who can pay their accountb.goods are indeed in stock to be despatchedc.the recording of incorrect or incomplete order details is preventedd.the sales order is acted upon timeously