Final answer:
The document used to control cash receipts is the bank deposit slip, which records money deposited into a bank account to track daily cash transactions. Checks are used as a promise of payment, with funds transferred from the payer's account upon deposit. Overdrafts happen when checks are written for more than the account balance.
Step-by-step explanation:
The document used in the control of cash receipts is a bank deposit slip. A bank deposit slip shows a record of the money that has been deposited into a bank account and is used to verify and maintain a record of daily cash transactions. Purchase requisitions are used to request goods or services internally within an organization, not for cash control. Canceled checks from customers serve as proof of payment after the transaction is complete, and receiving reports pertain to the receipt of goods, rather than the associated financial transaction.
When using a check for payment for goods and services, the check acts as a promise of payment from the payer's bank account. Once the store deposits the check, funds are transferred from the payer's bank to the store's account. An overdraft occurs if the payer writes a check for an amount greater than what is available in their account, which the bank may honor, leading to a negative balance and potential fees for the payer.