Question

Under a system of sound internal controls, if a company sold defective goods, the return of those goods from the customer should be accepted by the:

A. Receiving Clerk
B. Sales Clerk
C. Purchasing Clerk
D. Inventory Control Clerk

Answer 1

The return of defective goods from the customer should be accepted by the Receiving Clerk (A).

Thus the correct option is A.

Step-by-step explanation:

In a system of sound internal controls, the Receiving Clerk plays a crucial role in the return process of defective goods.

The Receiving Clerk is responsible for inspecting incoming shipments and verifying their condition.

When defective goods are returned, the Receiving Clerk can accurately assess and document the condition of the items.

Accepting returns through the Receiving Clerk ensures that the company maintains control over the inventory and can properly handle the disposition of defective products.

The Receiving Clerk's involvement in the return process is vital for maintaining accurate records and facilitating communication with other departments involved in the supply chain.

This control measure helps prevent fraudulent activities, ensures proper documentation, and allows for the traceability of defective goods back to the point of return.

By involving the Receiving Clerk, the company can uphold transparency and accountability in the handling of defective items, contributing to a robust internal control system.