153. You are trying to explain debit and credit memos that appear on bank statements and whether these will increase or decrease your company’s bank account balance. Complete the following table to...

153. You are trying to explain debit and credit memos that appear on bank statements and whether these will increase or decrease your company’s bank account balance. Complete the following table to help your new staff understand.

154. You began your new job as the accountant at Bolivar Industries during the month of December. During your first month, you found several interesting issues.


1) While looking through the invoices, you found Invoices 23-57, 60-95, and 99-110. It appears that invoices 58, 59, 96, 97, and 98 are missing.



2) During the month, Clerk # 2 issued $300 in refunds as compared to Clerks #1, #3, and #4 who issued less than $30 each.


3) The daily cash receipts and bank deposits reconcile, except on Tuesdays during the month.


4) Business is generally brisk during the holiday season, but two weeks before Christmas there was a sudden increase in slow payments.


REQUIRED:



Part A: What kind of warning signs could be associated with these issues?

Part B: What control could you put in place regarding cash refunds mentioned in Part A (2)?