Response to the following questions:
1. What is a petty cash receipt? Who should sign it?
2. Why should cash receipts be deposited on the day of receipt?
3. Some of Chester Company's cash receipts from customers are received by the company with the regular mail. Chester's recordkeeper opens these letters and deposits the cash received each day.
(a) Identify any internal control problem(s) in this arrangement.
(b) What changes to its internal control system do you recommend?