An effective procedure to test for unbilled shipments is to trace from the
A)sales history file to the shipping documents.
B)shipping documents to the sales history file.
C)sales history file to the accounts receivable ledger.
D)sales history file to the general ledger sales account.

Question

Quizplus · Accepted Answer

The most effective procedure to test for unbilled shipments is to trace from the shipping documents to the sales history file. This ensures that all shipments have been recorded in the sales history file, and any unbilled shipments can be identified and recorded in the accounts receivable ledger. Tracing from the sales history file to other documents or ledgers may not provide a complete picture of unbilled shipments.

An Effective Procedure to Test for Unbilled Shipments Is to Trace