Exercise 1a

Client: Lakeside Company PF-12

System: Revenue and Cash Receipts Cycle - Distributorship Revenue Recognition Prepared JCD 9/10/09
Reviewed JVB 11/11/09
Reviewed EVK 12/10/09

Notes Sales Division Inventory Department Assistant to the President Controller's Office

A. Record telephone order From From From From

on prenumbered sales invoice. Customer Sales Sales Inven.

B. Verify availability of merchandise Sales Invoice 2 Sales Invoice 1

and estimate shipping date.
Note A
C. Compare to current
age of accounts receivable. Verify Bill of Lading 3
If credit is available, approve Note B Customer Approved
sales invoice. If not, refer 5 Credit Credit List
invoice to Rogers for final action. 4
3
2
Sales Invoice 1
D. Match all copies of sales Note C Record Inventory
invoices. Initial first copy. To A/R Subs. Inventory Sales
Sales Ledger Sale Journal
Stampt "Approved" on copies 2-4.
Indicate approximate shipping To To
No.

date on fifth copy. Asst. Inven. From

Sales Inv.
To From No.
E. Pack and ship merchandise. Sales Sales
Prepare a five-part bill of lading. From From
Sales Invoice 1
(Approved)
Asst. Inven. Sales Invoice 3
F. Match bill of lading with From
sales invoice as to quantity and Sales
description of items. Add price Note E
to sales invoice, extend the prices Credit Update Bill of Lading 3
and foot. Add due date. Approved N No. Subs. A/R Subs. Sales Invoice 4
? Ledger
Ledger (Approved)
Sales Invoice 2
G. Match sales invoice to bill of
5 5
lading. Verify prices, check Note D 4 4
extensions, and footings. Record 3 3
Bill Note G Sales
2 2
invoice in the sales journal. Sales Invoice 1 No. Journal
(Approved) Bill of Lading 1

From
Inven. No.
To To
Inven. Cust. Bill of Lading 3
With To To To
Shipmt Cust. Contr. Cust. Sales Invoice 4
Cust
(Approved)
Bill of Lading 4 Name
4 To
3 Contr.
Sales Invoice 2
(Approved)

To
Cust. Cust
Note F Current
To Name
Asst.
Price List

Due
Date