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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. The remittance slips are used to update the accounts receivable file at the end of the day. 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 them reviews it. A copy of the aged trial balance is sent to the credit and collections department where it is reviewed.
REQUIRED
a. Develop a context diagram and a Level 0 DFD for the cash receipts system at S&S.
b. Prepare a document flowchart for the cash receipts system at S&S.
c. Prepare a business process diagram for the cash receipts system at S&S
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