Question

The purpose of tracing sales invoices to shipping documents would be to provide evidence that:

A. Shipments to customers were properly invoiced.
B. No duplicate shipments or billings occurred.
C. Goods billed to customers were shipped.
D. All prenumbered sales invoices were accounted for.

Answer 1

Tracing sales invoices to shipping documents provides evidence that shipments to customers were properly invoiced, no duplicate shipments or billings occurred, goods billed to customers were shipped, and all prenumbered sales invoices were accounted for.

Step-by-step explanation:

The purpose of tracing sales invoices to shipping documents would be to provide evidence that:

1. Shipments to customers were properly invoiced.
2. No duplicate shipments or billings occurred.
3. Goods billed to customers were shipped.
4. All prenumbered sales invoices were accounted for.

By tracing sales invoices to shipping documents, businesses can ensure that the goods they billed to customers were actually shipped, and that there were no duplicate shipments or billings. It also helps in accounting for all prenumbered sales invoices. This process provides an important control mechanism to verify the accuracy and completeness of sales transactions.