1.

It is not possible that an entity should issue a credit without the course of having an
credit evaluation / credit approval, credit approval is one of the most important steps in
the business transaction since it is where the entity check the credit limit, past credit
history, worthiness and the customer’s or entity’s ability to pay and lastly, it is where they
verify if an account exist. The only thing that could happen is, the sales order can be
rejected or the customer might be forced to pay in cash.
2. Shipping function or logistics is all about the inflow and outflow of the product, they
conduct the delivery of products from seller to customer, they cover the transportation,
internal movement, inventory and any other form of relevant information. While,
Warehouse functions, it is basically storing of goods to ensure the safety of products, it
regulates for receiving, storing and distributing raw goods or finished products. The
warehouse covers the unloading and checking inbound goods, storage, order picking
and handling returns. Shipping function and warehouse function can work together
although both of them are separate business functions however both of them are
essential in business transactions. With the regulation of the two you can ensure the
safe storage and delivery of your products, whilst having the technical functionality to
manage end to end consumer requirements.
3. The shipping process consists of 2 steps: first is that they pick and pack the order and
second is they ship the order to the customer. In the first step the merchandise is being
picked from the warehouse, the warehouse workers record the quantities of items that
are picked, after the stock records are adjusted they give the inventories to the shipping
department. In the next step it is where they ship the orders, the shipping department
reconciles or compares the products received from the warehouse with the sales
information received, and afterwards the inventory is shipped to the customer.
a.) if the entity uses its own vehicle then the entity has to prepare the goods along with
the packing slip and bill of lading and afterwards sent to the customer.
b.) if the entity uses the services of couriers the entity has to provide a freight bill in
which the customer has to pay the shipping charges, this document indicates the amount
the customer should pay to the courier company.
4. Once the goods along the packing slip, and bill of lading are prepared they are sent to
the customer, after that the billing will issue an invoice to customer and update the sales
journal. Billing ensures that all shipments must be billed to the customer, they conduct
independent verification to check if the information from the sales department and
information from the shipping department matched. Afterwards, the billing will conduct
another verification to know if the items delivered to the customer are the same items
that were ordered, it is necessary for them to have this verification in order to avoid any
discrepancies to happen that initiates a back order process. And lastly, the information
will be forwarded to the Accounts Receivable and Inventory Control.
5. a.) if i were to design the job description of the cashier it would be: Responsible and
honest cashier who is willing to manage transactions with customers on a daily basis,
an individual who have the capabilities to resolve customer’s issues and answer
questions, and lastly a cashier who is willing to learn and can provide a positive, fair and
courteous service to the customer.
 b.) in ensuring that a transaction is recorded accurately, an entity is required to establish
a strong internal control, the cashier must play his or her role by managing all the
transaction from a daily basis, there must be a separation of duties among the
employees, a cashier must have her separate cash drawers, she must not share here
password to others, supervisors should monitor the daily performance of her underlings
and must be the only one authorized to void certain transactions, and lastly the cashier
must keep all funds secured
6. Sales Order Form- are documents that contains information about the buyer and sales
quantity in a given purchase, this document is prepared by sellers that is issued to
customer, it serves as source document that conforms the sale of goods and details the
sale's specifics, including the quantity, pricing, and quality of goods or services provided.
Packing Slip- A packing slip is a document that describes the contents of a shipment to a
customer. The packing slip contains a separate line item for each item shipped. Each
line item states the product number, product description, and unit quantity shipped.
Packing slips are used to identify missing items and ensure that everything ordered was
received, they are prepared by a freight forwarder.
Bill of Lading- is a legal document issued by a carrier (transportation company) to a
shipper that details the type, quantity, and destination of the goods being carried, it also
serves as a shipment receipt when the carrier delivers the goods at a predetermined
destination.
Journal Vouchers-
Stock Release/picking ticket-
7. Cash prelist
Remittance advise
Cash receipts
Bank deposits