Ashton Fleming has asked you to document the cash receipts system at S&S. Ashton’s narrative of the system follows:
Customer payments include cash received at the time of purchase and payments received in the mail. At day’s end, the treasurer endorses all checks and prepares a deposit slip for the checks and the cash. A clerk deposits the checks, cash, and deposit slip at the local bank each day.
When checks are received as payment for accounts due, a remittance slip is included with the payment. The Treasurer sends this to accounts receivable. Data from the remittance slips are entered into the computer, and the accounts receivable database is updated. The remittance slips are stored in a file drawer by date.
Every week accounts receivable generates a cash receipts report and an aged trial balance using the accounts receivable ledger. The cash receipts report is sent to Scott and Susan and one of the reviews it. A copy of the aged trial balance is sent to the credit and collections department, where it is reviewed.
a. Develop a context diagram for the cash receipts system at S&S.
b. Develop a level 0 Data Flow Diagram of the Cash Receipts System at S&S
c. Prepare a document flowchart to document the cash receipts system at S&S.