Reference no: EM13503330

The following describes the revenue cycle procedures for the HSU Gadgets Inc.

Customers send customer orders to sales department. Customer orders are transcribed by Fluffy, salesperson, onto a six-part sales order. Copies of the source document are distributed to various departments as follows:

Copies 1, 2, and 3 go to Maxi, a warehouse clerk, who picks the goods from the shelves and ships them to the customer. Maxi sends copy 1 of the sales order along with the goods to the customer. Copy 2 is sent to the billing department and copy 3 is filed in the warehouse by sales order number.

Copies 4, 5, and 6 of sales order are sent by Fluffy to the billing department, where they are filed temporarily in numerical order by Bandit, the billing clerk. When the Bandit receives copy 2 from the warehouse, she pulls the other copies from the temporary file and completes the documents by adding prices, taxes, and freight charges, which she obtains from a reference file. Bandit then makes an entry in the Sales journal, sends copy 4 (customer bill) to the customer, and sends copies 5 and 6 to Cinder, the accounts receivable clerk, and Ella, the inventory control supervisor, respectively.

Upon receipt of the documents from the billing clerk, Cinder and Ella post the transactions to their respective subsidiary accounts [AR Subsidiary Ledger & Inventory Subsidiary Ledger]. They then file the document in the department by number.

On the due date, the customer sends a check for the full amount and a copy of the bill (the remittance advice) to the company. These documents are received by FiFi, the mailroom clerk, who distributes them as follows:

1. The check goes to the cash receipts clerk who records it in the cash receipts journal and prepares two deposit slips. One deposit slip and the check are sent to the bank, the other deposit slip is filed by date.

2. The remittance advice is sent to Cinder, who posts to the subsidiary accounts and then files the document numerically.

Requirement:

1. Use the steps demonstrated in class & prepare a document flowchart of the expenditure cycle procedures described above. Use Excel for this assignment.

2. Your Excel file (workbook) should include entities/activities table worksheet and document flowchart worksheet.

3. Please use DOCUMENTATION as the name of your file.

4. Submit Excel file to Sakai.