80.2K

Verified Solution

Link Copied!

Please summary this case.

A Spring Water Spa Company is a 15-store chain in the Midwest that sells hot tubs, supplies and accessories.Each store has a full-time, salaried manager and an assistant manager.The sales personnel are paid an hourly wage and a commission based on sales volume.

The company uses electronic cash registers to record each transaction.The salesperson enters his or her employee number at the beginning of his/her shift.For each sale, the salesperson rings up the order by scanning the items bar code, which then displays the items description, unit price, and quantity (each item must be scanned.)The cash register automatically assigns a consecutive number to each transaction.The cash register prints a sales receipt that shows the total, any discounts, the sales tax, and the grand total.

The salesperson collects payment from the customer, gives the receipt to the customer, and either directs the customer to the warehouse to obtain the items purchased or makes arrangements with the shipping department for delivery.The salesperson is responsible for using the system to determine whether credit card sales are approved and for approving both credit sales and sales paid by check.Sales returns are handled in exactly the reverse manner, with the salesperson issuing a return slip when necessary.

At the end of each day, the cash registers print a sequentially ordered list of sales receipts and provide totals for cash, credit card, and check sales, as well cash and credit card returns.The assistant manager prepares a daily reconciled report for the store managers review.

Cash sales, check sales, and credit card sales are reviewed by the manager, who prepares the daily bank deposit.The manager physically makes the deposit at the bank and files the validated deposit slip.At the end of the month, the manager performs the bank reconciliation.The cash register tapes, sales invoices, return slips, and reconciled report are mailed daily to corporate headquarters to be processed with files from all the other stores.Corporate headquarters returns a weekly Sales and Commission Activity Report to each store manager for review.

Answer & Explanation Solved by verified expert

See Answer