Accounting homework for best_Tutor

Chapter 7 Assignment

 

Must be in Microsoft Word.

 

Please see attached.

Yourfriend, Wendy Geiger, owns a small retail store that sells candies and nuts. Geiger acquires her

goods from a few select vendors. She generally makes purchase orders by phone and on credit. Sales are

primarily for cash. Geiger keeps her own manual accounting system using a general journal and a

general ledger. At the end of each business day, she records one summary entry for cash sales. Geiger

recently began offering items in creative gift packages. This has increased sales substantially, and she is

now receiving orders from corporate and other clients who order large quantities and prefer to buy on

credit. As a result of increased credit transactions in both purchases and sales, keeping the accounting

records has become extremely time consuming. Geiger wants to continue to maintain her own manual

system and calls you for advice.

Required:

In Microsoft Word write a memo to her advising how she might modify her current manual accounting

system to accommodate the expanded business activities. Geiger is accustomed to checking her ledger

by using a trial balance. Your memo should explain the advantages of what you propose and of any

other verification techniques you recommend.