An effective procedure to test for unbilled shipments is to trace from the:
A) sales journal to the general ledger sales account.
B) sales journal to the shipping documents.
C) shipping documents to the sales journal.
D) sales journal to the accounts receivable ledger.

Question

Quizplus · Accepted Answer

Tracing from the shipping documents to the sales journal ensures that all shipments have been recorded in the sales journal. This method also allows for verification of the accuracy of the sales journal entries. Tracing from the sales journal to other accounts may identify other errors or omissions, but it will not specifically target unbilled shipments.

An Effective Procedure to Test for Unbilled Shipments Is to Trace