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8e what steps would you take if in 8c the total of

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8(e)What steps would you take if, in 8c), the total of the subsidiary ledger did not reconcile with the controlaccount balance?
FNS40217 Module 1.1 Assignment_1811Page25of52
Units Covered: FNSACC311, FNSACC312, BSBFIA4018(f)You are developing the policies and procedures in relation to credit sales. What processes would youinclude in relation to:i.preparing invoicesii.preparing journal entries for these invoicesiii.authorising these journal entriesiv.filing invoices for auditing purposes (this may be related to the invoice numbering system)?Tip: the specific answers to these questions may not be completely found in the textbook. Use your learningand understanding of recording credit sales to arrive at your answers. Feel free to research other sources toassist you.i. preparing invoicesInvoices should be prepared in a timely manner.Besides business name, address, contact details, ABN, invoice number, Invoices should clearly state theinvoice date, products or services provided, amount due and payment details, including payment term andpayment options.ii. preparing journal entries for these invoicesThe journal entries consist of at least one debit and one credit, and the amounts of the debits and creditsshould match.The memo portion of the journal entry should include the customer’s name, a reminder of what waspurchased and the invoice number.Adjustment notes may be recorded as a negative sale in the credit sales journal. GST will be adjusted if therewas GST in the original invoice.iii. authorising these journal entriesOnly employees who need to post journals should be authorised on the accounts system to do so.Employees should only be able to post journals to the sections of accounts for which they are responsible.The journal prepared by one member of the team, together with the supporting documentation for thejournal, should be passed to a reviewer to be authorised before the journal is posted by another member ofthe team.As part of the month-end process, there should be a review of the journals posted in the month, inparticular reviewing journals posted to unusual account codes or for unusual amounts. Particular attentionshould be paid to round sum amounts. Sample testing of entries is also encouraged.iv. filing invoices for auditing purposes (this may be related to the invoice numbering system).Each invoice should be issued with a unique sequential number.

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