Required Prepare a bank reconciliation at October 31, 2017 in proper form 19. Wh

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Required Prepare a bank reconciliation at October 31, 2017 in proper form 19. What t are at least four important internal control procedures? 20. Ge ntly Used Cars i s a dealer that uses the periodic inventory system. The data presented below is from the accounting records of Gently for the year ended December 31, 2017 Sales S585,000 3,000 420,000 5,000 33,000 37,000 146,000 10,000 71,000 Sales discounts Purchases Purchase returns Inventory (January 1, 2017) Inventory (December 31, 2017) Operating expenses Transportation-in Retained earnings (January 1, 2017) Using the amounts provided above, calculate the cost of goods sold for 2017 products sold by Wild Optics Company, which uses the periodic 21. The following data is available for one of the inventory system S 80 234 326 Dec. 1 On hand, 10 units at $8.00 each 5 Purchased 30 units at $7.80 each 18 Purchased 40 units at $8.15 each Copyright Cengage Learning Powered by Cognero

Explanation / Answer

19. Four important internal control procedures :

a. Separation of duties : splitting responsibility for bookkeeping, deposits, reporting and audit.

b. Access controls : controlling access to different parts of the accounting system by passwords, electronic access logs etc.

c. Documentation : standardized documents should be used for invoices, material requisitions, inventory receipts etc. This makes it easier to review past records when searching for a source of discrepancy.

d. Physical audits : physical counting of cash and inventory. Helps discrepancies between book balances and actual balances to surface.

20. Cost of Goods Sold = Beginning Inventory + Purchases - Ending Inventory = $ 33,000 + $ ( 420,000 - 5,000 + 10,000) - $ 37,000 = $ 421,000.

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