Page 65 - Demo

جميع الحقوق محفوظة ـ اإلعتداء عىل حق املؤلف 65 بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونيةa. Credit Memo: indicates a reduction in amount due from a customerdue to him returning goods or given an allowance b. Sales returns and allowances journal: a journal used to record sales returns and allowances.7. Write off uncollectible accounts receivable:a. uncollectible accounts authorization form: is a document used internally to indicate authority to write off an account receivable as uncollectible (This transaction recorded in general journal 8. Estimate Bad debt Expense:Companies cannot expect to collect 100 % of their sales, accounting standards require them to record bad debt expense for the amount they do not expect to collect at the end of the period (this transaction is recorded in general journal) Second: Designing tests of controls and substantive tests of transactions for sales1) Understand internal control of sales: Auditor obtain understanding of clients internal control through:  Study the client’s flowcharts.  make inquiries of the client using an internal control questionnaire  Perform walkthrough tests of sales transactions and procedures and documents.