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Scenario Atlas Medical Center, Inc

Accounting

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Scenario Atlas Medical Center, Inc., owned by a publicly held company, is a small health care provider. It hires 7 salaried doctors, 10 nurses, 3 support staff, and 3 clerical employees. The clerical staff perform such duties as reception, correspondence, cash receipts, billing, and scheduling of appointments. All are bonded properly. Many patients pay for services given on the day of their appointment by cash or check. However, often, on the basis of an interview, the doctor who is to perform the respective services approves credit. The physician files a memo with one of the clerks when credit is accepted to set up the receivable using data produced by the physician. A pay slip that is issued to one of the clerks is prepared by the service doctor. For pricing and preparation of the bill for the patient. Each of the clerks uses the bills at the end of the day to prepare a report of profits and, in cases of credit transactions, to correct the accounts receivable from the subsidiary ledger. The front office clerks collect cash and inspections directly from patients and offer a prenumbered receipt to each patient. The clerks are taking turns opening the mail. The clerk who opens the mail every day instantly stamps all checks "for deposit only." One of the clerks makes a list of all cash and checks to be deposited in Parktown's bank account every day, shortly before lunch. The office will be closed from 12:00 to 2:00 p.m. And for lunch. The office manager takes the regular deposit to the bank at that period. The clerk who opened the email that day used the list of cash receipts and checks to correct patient accounts during the lunch break. The clerks take turns writing monthly statements and submitting them to patients with unpaid balances. Only after the doctor who performed the corresponding services claims the account will not pay and expresses that conviction to the office manager does one of the clerks write off uncollectible accounts. The office manager then issues a credit memo to write off the account, which the clerk processes. The office manage oversees the clerks, sends write-off memos, schedules doctor visits, makes bank deposits, reconciles bank statements, and conducts general correspondence duties. A local accountant who posts summaries compiled by the clerks to the general ledger, prepares income statements, and files the required payroll forms and tax returns, provides additional services monthly.

1. From the given scenario, identify the weakness in the process? [ 5 marks]

2. Suggest solutions for the weakness identified. [ 5 marks]

3) Identify the relationship between the tables in the rental database . Identify the primary and foreign keys and justify the selection. [10 marks]

a) Employee Table Employee-

ID First Name

Last Name

Title

b) Customer Table

Customer- ID

First Name

Last Name

Title

Address

City

State

E mail

c) Rentals Table

Customer- ID

Employee- ID

Bike ID

Date

d) Bikes Table

Bike ID

Serial No

Brand Model