One method of establishing internal controls over receivables is to establish a bank lock-box.

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With a bank lock-box, customers are instructed to send their payments directly to a special post office box set up by the company's bank. The bank collects the payments, deposits them into the company's account, and provides the company with information about the receipts. This method helps to ensure that all receivables are properly recorded and reduces the risk of mishandling or misappropriation of funds by company employees.

One Method of Establishing Internal Controls Over Receivables Is to Establish