6.02 Assignment - Accounting for Purchases and Cash Payments.docx - Santiago 1 Shianne Santiago Keystone Accounting Teachers Accounting Accounting for

6.02 Assignment - Accounting for Purchases and Cash Payments.docx

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Santiago 1 Shianne Santiago Keystone Accounting Teachers Accounting May 20, 2020 Accounting for Purchases and Cash Payments Part 1: List four procedures that a business should use to control its cash payments. Four procedures that a business should use to control its cash payments are: Making sure to authorize all cash payments properly. Each and every cash payment made must be supported by an approved source document, such as a receipt or bill. Paying all personnel with checks and only permit people who are authorized to sign checks. Utilizing checks that are pre-numbered. Maintaining an account that is designated for voided checks only. These checks must be marked as “void,” and filed in a proper sequence. Part 2: Determine the due dates and discount amount for the following example: A software company frequently purchases merchandise on account. When it receives an invoice, a clerk puts a processing stamp on the invoice indicating the due date, the amount of any discount, and the amount to be paid.
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  • Fall '09
  • invoice, Shianne Santiago

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