Your friend, Wendy Geiger, owns a small retail store that sells candies and nuts. Geiger acquires...

Question

Your friend, Wendy Geiger, 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 and 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 business day, she records one summary entry for cash sales. Geiger recently began offering items in creative gift packages. This has increased sales substantially, and she is now receiving 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 extremely time consuming. Geiger wants to continue to maintain her own manual system and calls you for advice. Required: In Microsoft Word 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. Your memo should explain the advantages of what you propose and of any other verification techniques you recommend.

David · Accepted Answer

To: Geiger 
From: Associate 
Re: Accounting system 
Date: 28 July 2014 
FACTS:  Geiger owns a small retail store which sells candies and nuts. She generally places the 
order on phone and takes them on credit but sell the goods on cash basis. Because of the small 
scale business Geiger keeps her own manual accounting system, but with the passage of time, 
Geiger is planning to expand the business which will result into number of transactions which is 
to be recorded. 
Issue:

Your friend, Wendy Geiger, 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 and on credit. Sales...

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