Common internal controls for accounts receivable would not include:
A)obtaining proper authorization for write-offs.
B)sending invoices and monthly statements to customers.
C)allowing all sales personnel to charge-off any accounts deemed uncollectible.
D)developing procedures that ensure that all credit sales are recorded and customers' account are debited.

Question

Quizplus · Accepted Answer

Allowing all sales personnel to charge-off any accounts deemed uncollectible is not a common internal control for accounts receivable. This type of control would create opportunities for fraud and errors, as sales personnel may abuse their authority and write-off accounts that are in fact collectible. Proper authorization for write-offs should be obtained, and specific individuals or departments should be responsible for reviewing and approving write-offs. Sending invoices and monthly statements to customers, developing procedures to ensure all credit sales are recorded, and obtaining proper authorization for write-offs are all common internal controls for accounts receivable.

Common Internal Controls for Accounts Receivable Would Not Include