Question How do businesses control cash receipts by mail? Explain the process.

Expert Solution

Step 1: Definition of cash receipts by mail

Cash receipts control by mail is the control that is done by the company to control all the checks that are received by mail.

Step 2: Steps involved in the control of cash receipts by mail

In the cash receipt control by mail, a business follows the following steps:

Step 1: In the first step, all the checks are opened by the mailroom employees. These employees send checks to the treasurer.

Step 2: In the second step, the control treasurer sends the checks into the bank for collection.

Step 3: In the third step of the control, the accounting department uses the remittance department to record the journal entry of cash accounts.

Step 4: In the final step of the control, the controller compares the following records of the day:

• Bank deposit amount from the treasurer

• Debit to Cash from the accounting department

To control the receipts by mail the checks are handed over to the treasurer.

Sahil Dangi answered 2 years ago

Question How do businesses control cash receipts over the counter?

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