What is the role of the shipping document in invoicing customers? What are the most important management assertions related to customer billing?
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Part 1
A shipping document
A.
is prepared at the time of shipment indicating the quantity and description of goods ordered. It is used to generate an invoice to the customer. Assuring that all shipments are recorded and billed is important to addressing the completeness assertion, as well as the accuracy of the quantities billed.
B.
is prepared at the time of shipment indicating the quantity and description of goods returned. It is used to generate a credit memo to the customer. Assuring that all shipments returned are properly credited to the customer account is important to addressing the occurrence assertion, as well as the valuation of the quantities returned.
C.
is prepared at monthly indicating the total quantity and description of goods shipped during the month. Assuring that all shipments are recorded and billed is important to addressing the completeness assertion, as well as the accuracy of the quantities billed.
D.
is prepared before goods are shipped indicating the quantity and description of goods ordered. It is used to generate an invoice to the customer. Assuring that all shipments are recorded and billed is important to addressing the existence assertion, as well as the accuracy of the quantities billed.