Robert and Karen are planning to open a coffee shop near the local college campus. They will make both cash and credit sales. They will hire college students to make coffee and to operate the coffee makers and cash registers. Either Robert or Karen will
act as manager during most hours that the business will be open. One student will be designated as assistant manager when they cannot be present. Describe at least five procedures that Robert and Karen might use to provide adequate internal control over cash and credit sales and bank deposits.
The following procedures should be considered:
All sales should be recorded on prenumbered sales slips. A separate type of form could be used to distinguish cash and credit sales.
On the cash sales slips, important information should be recorded such as the quantity, price, and totals.
Separate cash register keys should be used to enter cash and credit sales transactions.
The number of employees allowed to operate the cash register should be limited, and separate cash drawers should be used for each cashier.
On a daily basis, the cash register tape should be reconciled with the cash , the cash sales slips, and the credit sales slips.
Robert and Karen should try to be the only ones with responsibility for making the bank deposits.
Robert and Karen should observe that employees follow the procedures they establish for control over cash and credit sales.
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