ACCT 550 Lecture Notes - Lecture 2: Quickbooks, Vintage Clothing, Bank Statement

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beigesheep427

31 Mar 2019

School

Binghamton University

Department

Accounting

Course

ACCT 550

Professor

Sarkar Sumantra

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Document Summary

I did some bookkeeping at a vintage clothing rental company in high school and decided to create a flowchart for making a sale of a new customer. Items are packaged with the shipping address provided. Then invoices are created by looking up rental prices on inventory system on excel and the spreadsheet is also updated with the rental period. The invoice and items are shipped to the address pulled from the quickbooks customer file. Ceo reviews bank statement, and the bookkeeper records deposit of payment in quickbooks. Items come back in the mail in 2 weeks and are checked for damage and need of cleaning or repair. Inventory system is updated on excel to reflect item has been returned. Report of monthly income and outstanding inventory items is printed out and reviewed by ceo.

Related Questions

Which of the following statements is false?

Cash receipts events data are comprised of one or more invoicerecords.

None of these answers are correct

The typical B/AR/CR system assists in preparing internal andexternal reports.

Cash receipts can be accelerated by using some form of EFT.

The two types of adjustments that commonly result from aperiodic review of the aging details of customer account balancesare a recurring entry for estimated bad debts and a bad debtwrite-off.

Which of the following statements is true?

The billing system in which the invoice is prepared after goodshave been shipped and the sales order notification has been matchedto shipping's billing notification is called a post-billingsystem.

The billing system in which the invoice is prepared after goodshave been shipped and the sales order notification has been matchedto shipping's billing notification is called a pre-billingsystem.

The billing system in which the invoice is prepared after goodshave been shipped and the sales order notification has been matchedto shipping's billing notification is called a open-itemsystem.

The billing system in which the invoice is prepared after goodshave been shipped and the sales order notification has been matchedto shipping's billing notification is called a balance-forwardsystem.

None of these answers are correct.

Which of the following is not an operations process goal for theBilling/Accounts Receivable/Cash Receipts process?

Ensure security of resources

Ensure efficient employment of resources

Ensure AR master data update accuracy

None of these answers are correct

Ensure effectiveness of operations

Which of the following statements is false?

Pre-formatted screens in the OE/S process are a control planthat involves the detailed comparison of the individual elementsappearing on two source documents.

An invoice is a business document---either paper or electronictransmission---used to notify the customer of an obligation to paythe seller for merchandise which was ordered and shipped.

Depending on how the OE/S process is designed, the sales ordermaster data may be updated at least twiceÂ¾once when a new salesorder is created and later to reflect the shipment of thatorder.

None of these answers are correct.

Funds on deposit and available for use are known as goodfunds.

Which of the following statement is false?

The AR master file address is a postal address, maintained bythe firm's bank, which is used solely for the purpose of collectingchecks.

None of these answers are correct

The customer master data is a data store that contains dataidentifying the particular characteristics of each customer.

EFT includes wire transfers, credit and debit card processing,as well as payments made via the ACH Network.

A tickler file is one that is reviewed on a current and regularbasis for the purpose of taking action to clear the items from thatfile.

jadeworm65

INVENTORY MANAGEMENT FOR PHARMACEUTICAL INDUSTRY
Brazilâs pharmaceutical market, the second largest in the emerging world, is growing at a 28 percent compounded annual rate. In 2010, the value of the prescription drugs sold to Brazilâs middle class was $8 billion, mostly for unpatented medications. According to McKinsey report1, the middle class prefers to rely on public health services, whose physicians prescribe only generic drugs. Moreover, it reported that cost-conscious middle-class patients ask pharmacists to switch their medications to less expensive generics even when physicians prescribe branded drugs.

As a result, global pharmaceutical companies have concluded that they must focus on low-cost strategy for generics and branded generics. Nine of the largest local pharmaceutical films in Brazil (Ache, Biolab, Cristalia, Libbs, EMS, BioNovis, Hebron, Eurofarma and Orygen) have invested BRL538 million (USD174.3 million) during the first five months of 2015, focusing mainly on the production of biosimilars and generics2.

1 2
http://www.mckinsey.com/insights/health_systems_and_services/capturing_the_brazilian_pharma_opportunity https://www.ihs.com/country-industry-forecasting.html?ID=1065999088

Campinas is a city in State of Sao Paulo, Brazil. To the north are a series of coastal towns that are growing very quickly. In 1998, PharmaDist Co.-a pharmaceutical wholesaler serving nine largest local pharmaceutical producers) opened a distribution center in Campinas to supply pharmaceuticals and related products to retail pharmacies, hospitals, dispensing doctors and a few other outlets. In the past, deliveries of pharmaceuticals in this remote area had been made directly by manufacturers, but the growing population had encouraged wholesalers to open. Now there is a mature industry giving an efficient delivery service from centralized warehouses.
As more pharmaceutical wholesalers arrived the market has become increasingly competitive. PharmaDist is one of the main wholesaler companies in the area. It is now classified as a medium-sized private company which is run efficiently and gives a good service to customers. The three main activities of PharmaDist are:
â order taking and processing
â stock holding and control
â delivery to customers.

1 2
http://www.mckinsey.com/insights/health_systems_and_services/capturing_the_brazilian_pharma_opportunity https://www.ihs.com/country-industry-forecasting.html?ID=1065999088

To ensure his companyâs continuing success, Orlando Marcelo, the CEO is always looking for improved performance. A short while ago he was concerned that the cost of deliveries to customers was rising. The distribution system had been reviewed occasionally as the company grew, but it was essentially designed for a much smaller operation.
Orlando hired a management consultant to give advice on improving the transport operations. The consultant did some work which suggested areas for improvement, and his final report suggested that the company look at its stock holding policies. Orlando looked at the stock control system, which was based on standard software provided by SOFT seven years earlier. This had been updated and expanded twice, and still seemed to work quite well. Unfortunately, a close examination showed that stock levels had actually been drifting upwards for some time. The purchasing department explained that the company was successful because it had a reputation for reliability and service. A customer could e-mail, fax or telephone an order and delivery would be guaranteed during the next working day. Unfortunately PharmaDist had occasionally run out of stock and had let down customers (their own lead time from manufacturers averaged about a week). To ensure 97% service level, the purchasing department had adopted a policy of keeping two weeksâ demand in reserve stock, but for some reason this seemed to be drifting up to three weeksâ demand. The same ordering procedure was used for all items. This was based on the purchasing departmentâs view that the most important factor was average demand over the past five weeks. This value was used as a forecast of future demand. Then a reorder level was set as:
Reorder level = Forecast Ã (lead time + safety stock) Ã Factor
where Factor is a variable between 1 and 2 to give a subjective view of the itemâs importance and the supplierâs reliability. Order quantities are really set by the number of staff in the purchasing department. Three people work in the department, each processing up to sixty orders a day. In 200 working days a year they can process 36,000 orders. As there were 4000 items in stock, each item can have an average of 9 orders a year. To add another element of safety, each order was made big enough to last about eight weeks. The system was largely automated, and nobody really checked its performance. Items were usually in stock when they were needed, so managers did not look at the details of the operations. Unit costs varied between one dollar and several hundred dollars, and no one had calculated cost of stock holding or ordering.

Demand for Item Week 1 2 3 4 5 6 7 8 9 1 53 284 252 27 145 1235 567 121 987 2 64 301 260 32 208 1098 664 87 777 3 82 251 189 23 177 987 548 223 743 4 41 333 221 22 195 1154 602 304 680 5 73 276 232 27 211 1559 530 76 634 6 18 259 195 30 179 1209 650 377 655 7 40 242 217 31 205 993 612 156 598 8 53 310 225 23 187 1313 608 198 603 9 52 311 186 28 156 1405 596 94 621 10 21 336 265 23 182 1009 637 355 564 11 67 258 245 25 171 985 555 187 559 12 50 277 212 28 169 1237 589 209 519 13 22 263 224 31 210 1119 601 304 485 14 37 277 233 28 182 1124 584 295 483 15 36 275 235 28 182 1117 580 315 463 16 34 273 236 29 182 1110 576 335 442 17 32 271 238 29 181 1103 572 354 422 18 31 269 240 29 181 1096 568 374 402 19 29 267 242 29 181 1089 564 394 381 20 22 272 243 30 184 1105 568 430 359 Mean 43 280 230 28 183 1152 588 259 569 Standard Deviation 18 25 22 3 17 144 34 112 154 Reorder level 302 1220 1050 160 1120 6100 2520 900 4400 Order quantity 450 2000 1500 245 1450 7900 4500 1950 6400 Unit cost (USD) 45.25 10.2 8.75 32.6 12.25 6.5 28.5 36 4.2

1. How well do you think the existing inventory control system works? What are the current annual total costs for the selected items?
2. What policy would you suggest to reduce the total costs? What is the anticipated gain?
3. Orlando Marcelo is keen to make progress in this area. What would you advise him to improve their inventory management system?

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ACCT 550 Lecture Notes - Lecture 2: Quickbooks, Vintage Clothing, Bank Statement

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