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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