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would sign the bid and send it back to HRDC. The accepted bid
would then be recorded by Mrs. Payne or Ms. Enerson in a sales
journal. Typically, a customer would pay half the cost of the
job when work began on the job, and the remainder at its
completion. The payments HRDC received were supposed to be
recorded in an accounts receivable journal, but not all payments
were so recorded. Often HRDC would receive payment for jobs
recorded in the sales journal for one year in the following year.
The payments were generally recorded in the accounts receivable
journal for the year in which they were received.
During some of Mr. Payne’s or the other employees’ visits to
potential customers’ sites, small jobs would arise that could be
completed on the spot. The customers generally paid the HRDC
employee on the spot for such jobs. These small jobs were
referred to at HRDC as “extras”, and were recorded in an extras
journal. Payment for the extras was usually made by check. The
extra payments were not recorded in HRDC’s sales or accounts
receivable journals.
When HRDC received checks for its services, Mrs. Payne and
Ms. Enerson deposited certain of the checks into HRDC’s business
checking account and placed other checks in a drawer at HRDC’s
offices. For the most part, the checks that were not deposited
into HRDC’s bank account were those received in payment for the
extras. Mr. Payne or another employee of HRDC would then cash
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Last modified: May 25, 2011