AIS EXAM 2 SUA QUESTIONS AND ANSWERS 2026
Basic steps in the sales collections process. (revenue cycle) - answers - 1. Take the
customer order
2. Approve the customers credit.
3. Fill the approved order
4. Ship the product
5. Bill the customer
6. Collect payment
7. Sales returns
8. Identify and write off uncollectible accounts
Step 1 of sales/collection process: take the customer's order - answers - - can be
written, electronic or verbal
Step 3 of sales/collection process: approve the customers credit - answers - - approval
based on amount of order, customers credit status, and overall exposure to the
customer (other sales)
- credit approval is removed from the sales process
Step 3 of sales/collection process: fill the approved order - answers - use a picking
ticket to document items pulled
Step 4 of sales/collection process: ship the product - answers - - use a packing list to
document items shipped
- bill of lading is the contract between the carrier and the shipper
Step 5 of of sales/collection process: bill the customer - answers - - sales invoice
prepared from packing list
- for credit sales, an entry is made to the sales journal and accnts rec. Subsidiary
ledger. For cash sales, entry is made to cash receipts journal (d: cash, c: sales rev)
- terms of sales 2% 10 net 30
Step 6 of sales/collection process: collect payment - answers - - can be cash, check or
electronic receipt.
- can be applied against specific invoices or total balance owed.
Steps 7 of sales/collection process: sales returns - answers - - upon satisfactory receipt
of goods, and entry is made to the sales journal and the accnt receivable subsidiary
ledger.
Step 8 of sales/collection process: identify and write off uncollectible accounts - answers
- an entry is made to the accounts receivable subsidiary ledger and the general ledger.
, Key documents in the sales/collection process - answers - - customer order
- picking ticket
- packing list
- bill of lading
- customer check
- remittance advice
- deposit slip
Sales/collection process: customer order - answers - to document items ordered and
prices quoted
From sales dept >> to warehouse
Sales/collection process: picking ticket - answers - to document items that should be
shipped
From warehouse >> to shipping dept
Sales/collection process: packing list - answers - to document what was shipped
From shipping dept. >> to customer
Sales/collection process: bill of lading - answers - to document freight terms and
destination
From shipping dept. >> to common carrier
Sales/collection process: customer check - answers - to make payment for good
received
From customer >> to cash receipt deptt.
Sales/collection process: remittance advice - answers - to document that payment was
made - both for what and how much
From customer >> to accounting dept.
Sales/collection process: deposit slip - answers - to document how much was
deposited.
From cash receipts dept >> to bank
Sua sales/collection process key documents: - answers - cash receipts prelist, a return
request and credit memo.
Basic steps in the sales collections process. (revenue cycle) - answers - 1. Take the
customer order
2. Approve the customers credit.
3. Fill the approved order
4. Ship the product
5. Bill the customer
6. Collect payment
7. Sales returns
8. Identify and write off uncollectible accounts
Step 1 of sales/collection process: take the customer's order - answers - - can be
written, electronic or verbal
Step 3 of sales/collection process: approve the customers credit - answers - - approval
based on amount of order, customers credit status, and overall exposure to the
customer (other sales)
- credit approval is removed from the sales process
Step 3 of sales/collection process: fill the approved order - answers - use a picking
ticket to document items pulled
Step 4 of sales/collection process: ship the product - answers - - use a packing list to
document items shipped
- bill of lading is the contract between the carrier and the shipper
Step 5 of of sales/collection process: bill the customer - answers - - sales invoice
prepared from packing list
- for credit sales, an entry is made to the sales journal and accnts rec. Subsidiary
ledger. For cash sales, entry is made to cash receipts journal (d: cash, c: sales rev)
- terms of sales 2% 10 net 30
Step 6 of sales/collection process: collect payment - answers - - can be cash, check or
electronic receipt.
- can be applied against specific invoices or total balance owed.
Steps 7 of sales/collection process: sales returns - answers - - upon satisfactory receipt
of goods, and entry is made to the sales journal and the accnt receivable subsidiary
ledger.
Step 8 of sales/collection process: identify and write off uncollectible accounts - answers
- an entry is made to the accounts receivable subsidiary ledger and the general ledger.
, Key documents in the sales/collection process - answers - - customer order
- picking ticket
- packing list
- bill of lading
- customer check
- remittance advice
- deposit slip
Sales/collection process: customer order - answers - to document items ordered and
prices quoted
From sales dept >> to warehouse
Sales/collection process: picking ticket - answers - to document items that should be
shipped
From warehouse >> to shipping dept
Sales/collection process: packing list - answers - to document what was shipped
From shipping dept. >> to customer
Sales/collection process: bill of lading - answers - to document freight terms and
destination
From shipping dept. >> to common carrier
Sales/collection process: customer check - answers - to make payment for good
received
From customer >> to cash receipt deptt.
Sales/collection process: remittance advice - answers - to document that payment was
made - both for what and how much
From customer >> to accounting dept.
Sales/collection process: deposit slip - answers - to document how much was
deposited.
From cash receipts dept >> to bank
Sua sales/collection process key documents: - answers - cash receipts prelist, a return
request and credit memo.
