In a lock-box system ________.
A) customers send their checks directly to a post office box that belongs to the company
B) there is a delay in getting the cash into the company's bank account
C) a bank employee empties the box daily and records the deposits into the company's bank account
D) a bank employee records the journal entry

Question

Quizplus · Accepted Answer

In a lock-box system, a bank employee empties the box daily and records the deposits into the company's bank account. This allows for faster processing of payments and reduces the delay in getting the cash into the company's bank account. The bank employee does not record the journal entry, as this is the responsibility of the company's accounting department.

In a Lock-Box System ________