Accounting Memo

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My friend, Wendy Gieger, 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 an 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 buisness day, she records one summary entry for cash sales. Geiger recently began offering items in creative gift package. This has increased sales substantially, and she is now recieving 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 extreemly time consuming. Geiger wants to continue to maintain her own manual system and called me for advise. I need to 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. My memo should explain the advantages of what I propose and of any other verification techniques I recomend.
 
Microsoft Word – Min. 500 words – Need Memo by Feb 16 8PM CST

 

 

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