Response to the following questions:
1. In an attempt to improve operating efficiency, one employee was made responsible for all purchasing, receiving, and storing of supplies. Is this organizational change wise from an internal control standpoint? Explain.
2. Accompanying a bank statement for Covershot Company is a credit memorandum for $15,300, representing the principal ($15,000) and interest ($300) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries. Journalize the entry that should be made by the company to bring the accounting records up to date.