Which of the following controls most likely will be effective in offsetting the tendency write offs?

For each of the following types of misstatements , select the control that should have prevented the misstatement:
a. Which of the following controls most likely will be effective in offsetting the tendency write offs?
(1) Employees responsible for authorizing sales and bad-debt write-offs are denied
access to cash.
(2) Employees involved in the credit-granting function are separated from the sales
function.
(3) Shipping documents and sales invoices are matched by an employee who does
not have the authority to write off bad debts.
(4) Subsidiary accounts receivable records are reconciled to the control account by
an employee independent of the authorization of credit.
b. A sales invoice for $5,200 was computed correctly but, by mistake, was entered as
$2,500 to the sales journal and posted to the accounts receivable master file. The cus-
tomer remitted only $2,500, the amount on his monthly statement.
(1) Prelistings and predetermined totals are used to control postings.
(2) The customers’ monthly statements are verified and mailed by a responsible per-
son other than the bookkeeper who prepared them.
(3) Sales invoice numbers, prices, discounts, extensions, and footings are indepen-
dently checked.
(4) Unauthorized remittance deductions made by customers or other matters in dis-
pute are investigated promptly by a person independent of the accounts receiv-
able function.
c. Shipments occurring in December 2019 did not get recorded until the first few days
of January 2020.
(1) The system automatically assigns bill of lading numbers and ensures no dupli-
cates are issued.
(2) As goods leave the shipping dock, the system generates a bill of lading and associ-
ated sales invoice, which is automatically recorded in the sales journal.
(3) The accounting system requires entry of a valid bill of lading number provided by
the shipping department before a sales transaction is accepted for entry.
(4) The system prevents the creation of a bill of lading without a customer order dat-
ed prior to the shipping date.

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