A004

LAKESIDE COMPANY

ASSIGNMENT OF AUTHORITY

STAN WISDON (Assistant to Vice President – Inventory Department)

Stan Wisdon is the assistant of Edward Thomas, the vice president of inventory department.
Wisdon is the one who receives the first copy of invoice. His responsibility is to verify the
availability of the item being purchased.He is also the one who prepares a five-copy bill of
lading.

GEORGE MILLER (Assistant to the President)

George Miller, assistant to the president, receives the second copy of sales invoice. He is
responsible in maintaining the accounts receivable subsidiary ledger. He also keeps a list of
approved customers with a maximum credit limits.Miller also checks the current age of the
customer's accounts receivable balance before approving any sale. Miller uses his third copy of
the approved sales invoice to update the accounts receivable subsidiary ledger and then files the
sales invoice in a permanent file by customer name. Miller compares the bank deposit slip that
he has received from the bank against the total of the cash remittance list for that same date with
a spot check of individual items.

C. A. LAND (Assistant in Sales Division)

C. A. Land, assistant, is responsible in matching the three approved copies of the sales invoice
with the fourth copy of the bill of lading received in the Sales Division. He compares the
quantity and description of the order with the items that were shipped.

JAN LUCK (Assistant in the Controller’s Office)

Jan Luck receives the third copy of the bill of lading. She records in an inventory sales journal
the quantity of inventory, its description, the bill of lading number, and the date of shipment.
Having entered the appropriate information, Luck places the bill of lading in a temporary file by
sales invoice number, which has been manually recorded on the document. Luck forwards
information on all sales and purchases to the center, which then processes the data and returns
updated records to the company.