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cash Over - Over-the-Counter Receipts In retail businesses...

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Over-the-Counter Receipts In retail businesses, control of over-the-counter receipts centers on cash registers that are visible to customers. A cash sale is rung-up on a cash register with the amount clearly visible to the customer. This activity prevents the cashier from ringing up a lower amount and pocketing the difference. The customer receives an itemized cash register receipt slip and is expected to count the change received. The cash register's tape is locked in the register until a supervisor removes it. This tape accumulates the daily transactions and totals. At the end of the clerk's shift, the clerk counts the cash and sends the cash and the count to the cashier. The cashier counts the cash, prepares a deposit slip, and deposits the cash at the bank. The cashier also sends a duplicate of the deposit slip to the accounting department to indicate cash received. The supervisor removes the cash register tape and sends it to the accounting department as the basis for a journal entry to record the cash received. The tape is compared to the deposit slip for any discrepancies. Illustration 7-5 summarizes this process. Helpful Hint Flowcharts such as this one enhance the understanding of the flow of documents, the processing steps, and the internal control procedures.
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Illustration 7-5 Control of over-the-counter receipts This system for handling cash receipts uses an important internal control principle— segregation of record-keeping from physical custody. The supervisor has access to the
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