1. 5
Accounting Systems

2. After studying this chapter, you should be able to:
After studying this chapter, you should be able to:
Define an accounting system and describe its implementation.
Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals.

3. After studying this chapter, you should be able to:
After studying this chapter, you should be able to:
Describe and give examples of additional subsidiary ledgers and modified special journals.
Apply computerized accounting to the revenue and collection cycle.
Describe the basic features of e-commerce.

4. Define an accounting system and describe its implementation.
5-1
Objective 1
Define an accounting system and describe its implementation.

5. Accounting Systems Growth Process
5-1 5

6. Determine how the system should provide this information.
Three Step Process as a Business Grows and Changes
5-1
Step 1: Analysis
Identify the needs of those who use the business’s financial information.
Determine how the system should provide this information.

7. Step 2: Design Step 3: Implementation
5-1
Step 2: Design
The system is designed so that it meets the users’ needs.
Step 3: Implementation
The system is implemented and used.

8. Feedback
5-1
Once a system has been implemented, feedback, or input from the users of the information can be used to analyze and improve the system.

9. Internal Controls
5-1
Internal controls are policies and procedures that protect assets from misuse, ensure that business information is accurate, and ensure that laws and regulations are being followed.

10. Processing Methods
5-1
Processing methods are the means by which the system collects, summarizes, and reports accounting information. These methods may be either manual or computerized.

11. 5-2
Objective 2
Journalize and post transactions in a manual accounting system that uses subsidiary ledgers and special journals.

12. 5-2
A large number of individual accounts with a common characteristic can be grouped together in a separate ledger called a subsidiary ledger.

13. 5-2
The primary ledger, which contains all of the balance sheet and income statement accounts, is called a general ledger.

14. 5-2
Each subsidiary ledger is represented in the general ledger by a summarizing account, called a controlling account.

15. 5-2
The individual customers’ accounts are arranged in alphabetical order in a subsidiary ledger called the accounts receivable subsidiary ledger or customers ledger.

16. 5-2
The individual creditors’ accounts are arranged in alphabetical order in a subsidiary ledger called the accounts payable subsidiary ledger, or creditors ledger.

17. 5-2 General Ledger and Subsidiary Ledgers A B C D Cash 11
General Ledger and Subsidiary Ledgers
5-2
General Ledger
Accounts Receivable
Subsidiary Ledger A B C D
Customer Accounts
Cash 11
Accts. Rec. 12
Supplies 14
Accounts Payable
Subsidiary Ledger A B C D
Creditor Accounts
Accts. Pay. 21 17

18. Revenue journal Cash receipts journal 5-2
5-2
Special Journals
SELLING
Providing services on account
Revenue journal
recorded in
Receipt of cash from any source
Cash receipts journal
recorded in 18

19. Purchases journal Cash payments journal 5-2 BUYING
5-2
Special Journals
BUYING
Purchase of items on account
Purchases journal
recorded in
Payment of cash for any purpose
Cash payments journal
recorded in 19

20. 5-2
Special Journals
The all-purpose two-column journal, called the general journal or simply the journal can be used for entries that do not fit into any of the special journals.

21. 5-2
The revenue journal is used for recording fees earned on account. Cash fees earned would be recorded in the cash receipts journal.

22. 5-2 Posting the Revenue Journal Revenue Journal 22 Page 35 1
5-2
Posting the Revenue Journal
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2008
Mar Accessories by Claire
6 616 RapZone
Web Cantina
Accessories by Claire 22

23. 5-2 Revenue Journal Accounts Receivable Subsidiary Ledger 23 Page 35 1
5-2
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2008
Mar Accessories by Claire
6 616 RapZone
Web Cantina
Accessories by Claire
Accounts Receivable Subsidiary Ledger
Accessories by Claire
Date Item P.R. Debit Credit Balance
Mar. 2 R35 2,200 2,200
2008 23

24. 5-2 Revenue Journal Accounts Receivable Subsidiary Ledger 24 Page 35 1
5-2
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2008
Mar Accessories by Claire
6 616 RapZone
Web Cantina
Accessories by Claire
Accounts Receivable Subsidiary Ledger
Accessories by Claire
Date Item P.R. Debit Credit Balance
Mar. 2 R35 2,200 2,200
2008 24

25. 5-2
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2008
Mar Accessories by Claire
6 616 RapZone
Web Cantina
Accessories by Claire 25

26. 5-2 Exhibit 2 Revenue Journal Revenue Journal 26 Page 35 1
Exhibit 2 Revenue Journal
5-2
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2008
Mar Accessories by Claire
6 616 RapZone
Web Cantina
Accessories by Claire 26

27. 5-2
The debit total is posted from the revenue journal to Accounts Receivable in the general ledger.
ACCOUNT
Accounts Receivable
Account No. 12
Post. Ref.
Balance
Date
Item
Dr.
Cr.
Dr.
Cr.
2008
Mar. 1 Balance 31
R35
Revenue Journal, page 35 27

28. 5-2
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2008
Mar Accessories by Claire
6 616 RapZone
Web Cantina
Accessories by Claire
(12)
Indicates a debit posting of $9,600 to Accounts Receivable (General Ledger Account 12) 28

29. 5-2
The credit total is posted from the revenue journal to Fees Earned in the general ledger.
ACCOUNT
Fees Earned
Account No. 41
Post. Ref.
Balance
Date
Item
Dr.
Cr.
Dr.
Cr.
2008
Mar. 31
R35
Revenue Journal, page 35 29

30. 5-2
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 35 1 2 3 4 5 6
2008
Mar Accessories by Claire
6 616 RapZone
Web Cantina
Accessories by Claire
(12)
(41)
Indicates a credit posting of $9,600 to Fees Earned (General Ledger Account 41) 30

31. The following revenue transactions occurred during December:
5-2
Example Exercise 5-1
The following revenue transactions occurred during December:
Dec. 5 Invoice No. 302 to Butler Company for services provided on account, $5,000.
Dec. 9 Invoice No. 303 to JoJo Enterprises for services provided on account, $2,100.
Dec. 15 Invoice No. 304 to Double D, Inc. for services provided on account, $3,250.
Record these transactions in a revenue journal as illustrated in Exhibit 2. 31

32. For Practice: PE 5-1A, PE 5-1B
5-2
Follow My Example 5-1
Revenue Journal
Invoice Post Accts. Rec. – Debit
Date No. Account Debited Ref Fees Earned – Credit
Page 1 2 3 4 5 6
Dec Butler Company
9 303 JoJo Enterprises
Double D Inc
For Practice: PE 5-1A, PE 5-1B 32

33. Cash Receipts Journal
5-2
All transactions that involve the receipt of cash are recorded in a cash receipts journal.
Every entry recorded in the cash receipts journal will involve a debit to the “Cash Dr.” column.

34. 5-2 GENERAL LEDGER Cash Receipts Journal and Postings 42 34
Cash Receipts Journal and Postings
5-2
Mar Rent Revenue
CASH RECEIPTS JOURNAL
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
Page 14
2008
19 Web Cantina 3,400 3,400
28 Accessories by Claire 2,200 2,200
30 RapZone 1,750 1,750 42
GENERAL LEDGER
ACCOUNT Rent Revenue Acct. No. 42
Date Item P.R. Debit Credit Cr. Bal.
Mar
2008
CR14 34

35. 5-2 42 Accounts Receivable Subsidiary Ledger 35 CASH RECEIPTS JOURNAL
5-2
CASH RECEIPTS JOURNAL
Page 14
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
2008 42
Mar Rent Revenue
19 Web Cantina 3,400 3,400
28 Accessories by Claire 2,200 2,200
30 RapZone 1,750 1,750
Accounts Receivable Subsidiary Ledger
Web Cantina
Date Item P.R. Debit Credit Balance
Mar. 1 Bal. 3, R35 2,650 6,050
2008 35 19
CR14
3,400
2,650

36. 5-2
After all journalizing and posting for the month to individual accounts is complete, the columns are totaled.

37. 5-2 Posted Cash Receipts Journal 42 ( ) (12) (11) 37
Posted Cash Receipts Journal
5-2
CASH RECEIPTS JOURNAL
Page 14
Other Accounts
Post Accounts Receivable Cash
Date Account Credited Ref. Cr. Cr. Dr.
2008 42
Mar Rent Revenue
19 Web Cantina 3,400 3,400
28 Accessories by Claire 2,200 2,200
30 RapZone 1,750 1,750
400 7,350 7,750
( )
(12)
(11)
A checkmark indicates that the items in this column are posted individually. 37

38. 5-2
After posting, the total amount of the accounts in the accounts receivable subsidiary ledger should match the balance in the general ledger’s Accounts Receivable account.

39. Total debits (from revenue journal) 9,600
5-2
Accounts Receivable—(Controlling)
Balance, March 1, 2008 $3,400
Total debits (from revenue journal) 9,600
Total credits (from cash receipts journal) (7,350)
Balance, March 31, 2008 $5,650
NetSolutions
Customer Balance Summary Report, March 31, 2008
Accessories By Claire $3,000
RapZone 0
Web Cantina 2,650
Total accounts receivable $5,650 39

40. Describe each transaction and the source of each posting.
5-2
Example Exercise 5-2
The debits and credits from two transactions are presented in the following customer account:
NAME Sweet Tooth Confections
ADDRESS Lombard St.
Date Item P.R. Dr. Cr. Balance
July 1 Bal
7 Inv. 35 R
31 Inv. 31 CR
Describe each transaction and the source of each posting. 40

41. For Practice: PE 5-2A, PE 5-2B
5-2
Follow My Example 5-2
July 7 Provided $86 services on account to Sweet Tooth Confections, itemized on invoice 35. Amount posted from page 12 of the revenue journal.
July 31 Cash of $122 was collected from Sweet Tooth Confections (invoice 31). Amount posted from page 4 of the cash receipts journal.
For Practice: PE 5-2A, PE 5-2B 41

42. 5-2
The purchases journal is designed for recording all purchases on account.

43. 5-2 Journalizing in the Purchases Journal 43 PURCHASES JOURNAL Page 11
Journalizing in the Purchases Journal
5-2
PURCHASES JOURNAL
Page 11
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
2008
Mar. 3 Howard Supplies
7 Donnelly Supplies
12 Jewett Business Sys. 2,800 Off. Equip. 2,800
19 Donnelly Supplies 1,450 1,450
27 Howard Supplies 43

44. 5-2
Note that the March 12 purchase of office equipment for $2,800 is recorded as a debit in the “Other Accounts Dr.” column. Also note that the account title is written in for proper posting.

45. 5-2 45 PURCHASES JOURNAL Page 11 Accts. Other
5-2
PURCHASES JOURNAL
Page 11
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
2008
Mar. 3 Howard Supplies
7 Donnelly Supplies
12 Jewett Business Sys. 2,800 Off. Equip. 2,800
19 Donnelly Supplies 1,450 1,450
27 Howard Supplies 45

46. 5-2 Posting the Purchases Journal Accounts Payable Subsidiary Ledger
Posting the Purchases Journal
5-2
PURCHASES JOURNAL
Page 11
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
2008
Mar. 3 Howard Supplies
7 Donnelly Supplies
12 Jewett Business Sys. 2,800 Off. Equip. 2,800
19 Donnelly Supplies 1,450 1,450
27 Howard Supplies
Accounts Payable Subsidiary Ledger
Howard Supplies
Date Item P.R. Dr. Cr. Balance
Mar
2008
P11 46

47. 5-2
PURCHASES JOURNAL
Page 11
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
2008
Mar. 3 Howard Supplies
7 Donnelly Supplies
12 Jewett Business Sys. 2,800 Off. Equip. 18 2,800
19 Donnelly Supplies 1,450 1,450
27 Howard Supplies
Office Equipment (Account 18 in the general ledger) is debited for $2,800. 47

48. 5-2
At the end of March, all columns are totaled and equality of debits and credits is verified. Then the total amount in the “Accounts Payable Cr.” and “Supplies Dr.” columns are posted. Because Office Equipment was posted earlier, the $2,800 total is not posted.

49. 5-2 GENERAL LEDGER ACCOUNT Accounts Payable No. 21 49 Mar. 1 Bal 1,230
5-2
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
PURCHASES JOURNAL
Page 11
2008
Mar. 3 Howard Supplies
7 Donnelly Supplies
12 Jewett Business Sys. 2,800 Off. Equip. 18 2,800
19 Donnelly Supplies 1,450 1,450
27 Howard Supplies
31 6,230 3, ,800
( ) ( ) ( ) 21
GENERAL LEDGER
ACCOUNT Accounts Payable No. 21
Date Item P.R. Debit Credit Balance
2008 49
Mar. 1 Bal 1,230 31
P11
6,230
7,460

50. 5-2 GENERAL LEDGER ACCOUNT Supplies No. 14 50 Mar. 1 Bal 2,500 31 P11
5-2
PURCHASES JOURNAL
Page 11
2008
Mar. 3 Howard Supplies
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
7 Donnelly Supplies
12 Jewett Business Sys. 2,800 Off. Equip. 18 2,800
19 Donnelly Supplies 1,450 1,450
27 Howard Supplies
31 6,230 3, ,800
( ) ( ) ( ) 21 14
GENERAL LEDGER
ACCOUNT Supplies No. 14
Date Item P.R. Debit Credit Balance 50
2008
Mar. 1 Bal 2,500 31
P11
3,430
5,930

51. 19 Purchased cleaning supplies for $110, on
5-2
Example Exercise 5-3
The following purchase transactions occurred during October for Helping Hand Cleaners:
Oct. 11 Purchased cleaning supplies for $235, on account, from General Supplies.
19 Purchased cleaning supplies for $110, on
account, from Hubble Supplies.
24 Purchased office equipment for $850, on account,
from Office Warehouse.
Record these transactions in a purchases journal as illustrated at the top of Exhibit 5. 51

52. For Practice: PE 5-3A, PE 5-3B
5-2
Follow My Example 5-3
PURCHASES JOURNAL
Accts. Other
Post Payable Supplies Accounts Post
Date Account Credited Ref. Cr. Dr. Dr. Ref. Amount
Oct. 11 General Supplies
19 Hubble Supplies
24 Office Warehouse 850 Off. Equip
For Practice: PE 5-3A, PE 5-3B 52

53. Cash Payments Journal
5-2
All transactions involving a credit to Cash are recorded in the cash payments journal.

54. On March 2, issued Check 150 for rent of $1,600.
5-2
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008
Mar Rent Expense 1,600 1,600
On March 2, issued Check 150 for rent of $1,600. 54

55. On March 15, issued Check 151 to Grayco Supplies on account, $1,230.
5-2
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008
Mar Rent Expense 1,600 1,600
Grayco Supplies 1,230 1,230
On March 15, issued Check 151 to Grayco Supplies on account, $1,230. 55

56. 5-2
Let’s post to the accounts payable subsidiary ledger at this time to keep the creditors’ account current.

57. 5-2 CASH PAYMENTS JOURNAL Mar. 2 150 Rent Expense 1,600 1,600 
5-2
CASH PAYMENTS JOURNAL
PAGE 7
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
2008
Mar Rent Expense 1,600 1,600
Grayco Supplies 1,230 1,230 
Accounts Payable Subsidiary Ledger
Grayco Supplies
Mar. 3 Bal ,230
Date Item P.R. Dr. Cr. Balance
2008 15
CP7
1,230
--- 57

58. Journalize the remainder of March’s cash disbursements.
5-2
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008
Mar Rent Expense 1,600 1,600
Grayco Supplies 1,230 1,230 
Jewett Business Sys. 2,800 2,800
Donnelly Supplies
Utilities Expense 1,050 1,050
Howard Supplies
Journalize the remainder of March’s cash disbursements. 58

59. Journalized the remainder of March’s cash disbursements.
5-2
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008
Mar Rent Expense 1,600 1,600
2008
Mar Rent Expense 1,600 1,600
Grayco Supplies 1,230 1,230
Grayco Supplies 1,230 1,230  
Jewett Business Sys. 2,800 2,800
Donnelly Supplies
Utilities Expense 1,050 1,050
Howard Supplies
Jewett Business Sys. 2,800 2,800
Donnelly Supplies
Utilities Expense 1,050 1,050
Howard Supplies 
Journalized the remainder of March’s cash disbursements.
Post to individual creditor’s accounts. 59 21

60. 5-2
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008
Mar Rent Expense 1,600 1,600
2008
Mar Rent Expense 1,600 1,600
Grayco Supplies 1,230 1,230
Grayco Supplies 1,230 1,230 
Jewett Business Sys. 2,800 2,800
Donnelly Supplies
Utilities Expense 1,050 1,050
Howard Supplies
Jewett Business Sys. 2,800 2,800
Donnelly Supplies
Utilities Expense 1,050 1,050
Howard Supplies
,650 5,050 7,700
The journal is ruled, summed, and verified for equality of debits and the “Cash Cr.” column. 60

61. 5-2
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
CASH PAYMENTS JOURNAL
Other Accounts
Ck. Post Accounts Payable Cash
Date No. Account Debited Ref. Dr. Dr. Cr
PAGE 7
2008
Mar Rent Expense 1,600 1,600
2008
Mar Rent Expense 1,600 1,600 52
Grayco Supplies 1,230 1,230
Grayco Supplies 1,230 1,230 
Jewett Business Sys. 2,800 2,800
Donnelly Supplies
Utilities Expense 1,050 1,050
Howard Supplies
Jewett Business Sys. 2,800 2,800
Donnelly Supplies
Utilities Expense 1,050 1,050
Howard Supplies 54
Items in the “Other Accounts Dr.” column are posted. Then the totals for “Accounts Payable Dr.” and “Cash Cr.” are posted.
,650 5,050 7,700
( )  
(21)
(11) 61

62. 5-2 Accounts Payable Control and Subsidiary Ledger
Accounts Payable Control and Subsidiary Ledger
5-2
Accounts Payable— (Control)
Balance, March 1, 2008 $1,230
Total credits (from purchases journal) 6,230
Total debits (from cash payments journal) (5,050)
Balance, March 31, 2008 $2,410
NetSolutions
Supplier Balance Summary Report
March 31, 2008
Donnelly Supplies $1,450
Grayco Supplies 0
Howard Supplies 960
Jewett Business Systems
Total $2,410 62

63. Describe each transaction and the source of each posting.
5-2
Example Exercise 5-4
The debits and credits from two transactions are presented in the following creditor’s (supplier’s) account:
NAME Lassiter Services, Inc.
ADDRESS St. Bonaventure Ave.
Date Item P.R. Dr. Cr. Balance
Aug. 1 Bal
12 Bill 101 CP
22 Bill 106 P
Describe each transaction and the source of each posting. 63

64. For Practice: PE 5-4A, PE 5-4B
5-2
Follow My Example 5-4
Aug. 12 Paid $200 to Lassiter Services, Inc. on account (Bill 101). Amount posted from page CP36 of the cash payments journal.
Aug. 22 Purchased $140 of services on account from Lassiter Services, Inc. itemized on Bill Amount posted from page P16 of the purchases journal.
For Practice: PE 5-4A, PE 5-4B 64

65. 5-3
Objective 3
Describe and give examples of additional subsidiary ledgers and modified special journals.

66. Modified Special Journals
5-3
A business may modify its special journals by adding one or more columns for recording transactions that occur frequently.

67. 5-3
On November 2, NetSolutions issued Invoice No. 842 to Litten Company for $4,770, which included sales taxes of $270.

68. 5-3 Modified Revenue Journal Revenue Journal 68 Page 40
Modified Revenue Journal
5-3
Revenue Journal
Page 40
Nov Litten Co
2008
Invoice Accts. Rec. Fees Earned Sales Tax. Pay
Date No Account Debited PR Dr. Cr. Cr. 68

69. 5-3
Revenue Journal
Page 40
Invoice Accts. Rec. Fees Earned Sales Tax. Pay
Date No Account Debited PR Dr. Cr. Cr.
Nov Litten Co
2008
$4,770 is debited to Litten Co. in the accounts payable subsidiary ledger 69

70. A checkmark indicates that the amount has been posted.
5-3
Revenue Journal
Page 40
Invoice Accts. Rec. Fees Earned Sales Tax. Pay
Date No Account Debited PR Dr. Cr. Cr.
Nov Litten Co
2008
A checkmark indicates that the amount has been posted. 70

71. 5-3
On November 3, issued Invoice No. 843 to Kaufman Supply Company for $1,166, which included sales taxes of $66.

72. 5-3
Revenue Journal
Page 40
Invoice Accts. Rec. Fees Earned Sales Tax. Pay
Date No Account Debited PR Dr. Cr. Cr.
Nov Litten Co
2008
Kaufmann Supply 72

73. 19 Issued Invoice No. 59 to K-Jam Enterprises for
5-3
Example Exercise 5-5
The state of Tennessee has a 7% sales tax. Volunteer Services, Inc., a Tennessee company, had two revenue transactions as follows:
Aug. 3 Issued Invoice No. 58 to Helena Company for services provided on account, $1,400, plus sales tax.
19 Issued Invoice No. 59 to K-Jam Enterprises for
services provided on account, $900, plus sales
tax.
Record these transactions in a revenue journal as illustrated in the previous section. 73

74. For Practice: PE 5-5A, PE 5-5B
5-3
Follow My Example 5-5
Revenue Journal
Invoice Accts. Rec. Fees Earned Sales Tax. Pay
Date No Account Debited PR Dr. Cr. Cr.
Aug Helena Company
19 59 K-Jam Enterprises
For Practice: PE 5-5A, PE 5-5B 74

75. Apply computerized accounting to the revenue and collection cycle.
5-4
Objective 4
Apply computerized accounting to the revenue and collection cycle.

76. Database
5-4
A database collects, stores, and organizes information in a retrievable format.

77. 5-4 77

78. At any time, managers may request reports from the software.
5-4
At any time, managers may request reports from the software.
The customer balance summary.
The fees earned by customer detail.
The cash receipts.

79. Describe the basic features of e-commerce.
5-5
Objective 5
Describe the basic features of e-commerce.

80. e-Commerce
5-5
Using the Internet to perform business transactions is termed e-commerce.

81. B2C
5-5
When transactions are between a company and a consumer, it is termed B2C (business-to-consumer) e-commerce.

82. Supply chain management (SCM) Consumer relationship management (CRM)
5-5
Three more advanced areas where the Internet is being used for business purposes are:
Supply chain management (SCM)
Consumer relationship management (CRM)
Product life-cycle management (PLM)