Question

One of two office clerks in a small company prepares a sales invoice for $4,300; however, the invoice is incorrectly entered by the bookkeeper in the general ledger and the accounts receivable subsidiary ledger as $3,400. The customer subsequently remits $3,400, the amount on the monthly statement. Assuming there are only three employees in the department, the most effective control to prevent this type of error is ______

Answer 1

Using predetermined totals to control posting routines.

Step-by-step explanation:

A validation methods to avoid errors is the batch total control, that verificate the transcription errors and transportation errors.

Validations aims to make sure that data is sensible, reasonable, complete and within acceptable boundaries.

The batch total checks that something is not missing by adding together a number field in different records and checking the total. For example, if an invoice has three items costing 1,2 and 3, the control will look for a batch total of 6.