Question

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 item’s bar code, which then displays the item’s 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 manager’s 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 1

Spring water spa company has 15 stores in Midwest each of which sells hotubs and related accessories has full time salaries managers and assistant managers paid hourly plus commission based on sales volume. It uses electronic Cash register for recording transactions in which employee enters his employee number at tue beginning of shift. He scans bar code of item on its sale which contains description and its price. Consecutive numbers are assigned to transaction by system and sales receipts containing sales tax, discount are printed on it. Salesperson collect payment, give receipt and either instruct customer to take goods or make arrangements for delivery. Salesperson determines whether credit card sale or sale by check is approved using system. Sales return is handled in exact reverse manner. At the end of the day Cash register prints sales receipt sequentially ordered containing total of different sales as well as returns . Assistant manager prepares daily reconciled report for manager's review who after reviewing prepares daily bank deposit and physically deposits amount to bsnk and files validated deposit slips. He also performs bank reconciliation at the end of month. All documentations are mailed to corporate headquarters for processing with other stores reports. After processing it returns a weekly sales and commission action report to each store manager for review.