Arcontica Classic Furniture (ACF) manufactures a range of rustic chairs, lawn furniture, and interior furnishing including lamps, desks, and bed frames. ACF's customer base comprises both private customers and retail outlets. Consumer's sales are for cash or by credit card, but business customers are for cash or by credit card, but business customers are extended a line of credit. New business customers undergo a credit check before receiving a credit line. All sales are made online, by fax or mailed in hard copy order. When a credit order is received, the sales clerk verifies inventory availability, prepares a sales order, and sends the stock release copy to the warehouse clerk who picks the goods and arranges shipment. He then prepares the bills of lading and sends copies of the shipping notices to the billing department and inventory control. The billing department updates the sales journal and sends an invoice to the customer. The clerk then sends the shipping notice to the AR department, where the AR clerk updates the AR subsidiary ledger. Customers submit checks and remittance advices to the mail room. A clerk sends the remittance advances to the AR department and the checks to the cash receipts department. At the end of the day, the cash receipts clerk prepares a deposit sip and deposits the checks into the company's bank account, files the bank receipt, and updates the cash receipts journal. The physical aspects of cash sales transactions are handled similar to the process described here except that checks or credit card account numbers are submitted with the original order. Required: 1. Prepare the REA model to support the sales/ collection process. 2. Show the cardinalities for all associations. 3. List the tables, keys, and attributes needed to implement this model in a relational database.
Arcontica Classic Furniture (ACF) manufactures a range of rustic chairs, lawn furniture, and interior furnishing including lamps, desks, and bed frames. ACF's customer base comprises both private customers and retail outlets. Consumer's sales are for cash or by credit card, but business customers are for cash or by credit card, but business customers are extended a line of credit. New business customers undergo a credit check before receiving a credit line. All sales are made online, by fax or mailed in hard copy order. When a credit order is received, the sales clerk verifies inventory availability, prepares a sales order, and sends the stock release copy to the warehouse clerk who picks the goods and arranges shipment. He then prepares the bills of lading and sends copies of the shipping notices to the billing department and inventory control. The billing department updates the sales journal and sends an invoice to the customer. The clerk then sends the shipping notice to the AR department, where the AR clerk updates the AR subsidiary ledger. Customers submit checks and remittance advices to the mail room. A clerk sends the remittance advances to the AR department and the checks to the cash receipts department. At the end of the day, the cash receipts clerk prepares a deposit sip and deposits the checks into the company's bank account, files the bank receipt, and updates the cash receipts journal. The physical aspects of cash sales transactions are handled similar to the process described here except that checks or credit card account numbers are submitted with the original order. Required: 1. Prepare the REA model to support the sales/ collection process. 2. Show the cardinalities for all associations. 3. List the tables, keys, and attributes needed to implement this model in a relational database.
Chapter3: Internal Control Issues
Section3.2: Howard Street Jewelers, Inc.
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Transcribed Image Text:requirements after it.
Arcontica Classic Furniture (ACF)
manufactures a range of rustic chairs, lawn
furniture, and interior furnishing including
lamps, desks, and bed frames. ACF's
customer base comprises both private
customers and retail outlets. Consumer's
sales are for cash or by credit card, but
business customers are for cash or by
credit card, but business customers are
extended a line of credit. New business
customers undergo a credit check before
receiving a credit line. All sales are made
online, by fax or mailed in hard copy order.
When a credit order is received, the sales
clerk verifies inventory availability,
prepares a sales order, and sends the
stock release copy to the warehouse clerk
who picks the goods and arranges
shipment. He then prepares the bills of
lading and sends copies of the shipping
notices to the billing department and
inventory control. The billing department
updates the sales journal and sends an
invoice to the customer. The clerk then
sends the shipping notice to the AR
department, where the AR clerk updates
the AR subsidiary ledger. Customers submit
checks and remittance advices to the mail
room. A clerk sends the remittance
advances to the AR department and the
checks to the cash receipts department. At
the end of the day, the cash receipts clerk
prepares a deposit sip and deposits the
checks into the company's bank account,
files the bank receipt, and updates the
cash receipts journal. The physical aspects
of cash sales transactions are handled
similar to the process described here
except that checks or credit card account
numbers are submitted with the original
order.
Required:
1. Prepare the REA model to support the
sales/ collection process.
2. Show the cardinalities for all
associations.
3. List the tables, keys, and attributes
needed to implement this model in a
relational database.
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