One method of establishing proper internal control over collections of accounts receivable is to:

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Establishing a bank lock-box is a method of ensuring proper internal control over collections of accounts receivable. This involves directing all customer payments to a post office box controlled by the bank, with the bank providing regular reports of deposits made on the company's behalf. This approach minimizes opportunities for misappropriation of funds by company employees, as payments go directly to the bank and not through the company's internal processes. A, B, and D are not as effective at establishing internal control over collections of accounts receivable.

One Method of Establishing Proper Internal Control Over Collections of Accounts