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Jane Smith handles cash receipts from customers. She also has responsibility for issuing credit memos...

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Accounting

Jane Smith handles cash receipts from customers. She also has responsibility for issuing credit memos and writing off uncollectible accounts. Additionally, she is responsible for maintaining the A/R records. When customers make payments, Jane occasionally issues a credit memo and steals the cash. This fraud can be discovered if an employee other than Jane:

Select one:

A. Reconciles the bank statement to the accounting records.

B. Reconciles the A/R subsidiary ledger to the A/R controlling account.

C. Investigates weekly all accounts written off as uncollectible.

D. Reconciles credit memos for sales returns to returned merchandise accepted by the receiving department.

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