Just Say No to Rugs is a manufacturer of high-quality prefinished wood flooring. Their customer base consists of private consumers, building and supply retailers, and construction companies. The company purchases unfinished exotic woods, stains, and finishes from numerous suppliers. The following describes the company’s purchases and cash payments procedures. The inventory control clerk monitors raw material and finished goods inventory levels. When raw materials drop to a predetermined reorder point, the clerk prepares a purchase requisition, which the clerk sends to the purchasing agent, who prepares five copies of a purchase order. Two copies are sent directly to the vendor. One is used to post to the purchases journal and is then placed in an open purchase order file. The AP and the receiving departments also each receive a copy each of the purchase order, which they file temporarily. Each week, the purchasing agent prepares a journal voucher from the purchases journal and sends it to the general ledger department for posting. Upon receiving the raw materials, the receiving department clerk creates four copies of the receiving report. One copy is sent to the raw materials warehouse, and one copy is sent to the AP department. One copy is sent to the inventory control department where it is used to update the inventory records. The final copy is sent to the purchasing department where it is filed. Vendors send their invoices to the AP department, where they are reconciled with the receiving reports and purchase orders. The AP clerk then creates an AP record in the AP subsidiary ledger. On the AP due date, the AP clerk sends the purchase order, receiving report, and invoice to the cash disbursement clerk who prepares a check and sends it to the vendor. After preparation of the checks, the supporting documents are sent back to the AP department. Each week, the AP clerk sends a journal voucher to the general ledger department for posting to the control accounts. Required a. Prepare the REA model to support the purchase and cash payments process. b. Show the cardinalities for all associations. c. List the tables, keys, and attributes needed to implement this model in a relational database.

BuyFind

Accounting Information Systems

10th Edition
Hall + 1 other
Publisher: Cengage Learning,
ISBN: 9781337619202
BuyFind

Accounting Information Systems

10th Edition
Hall + 1 other
Publisher: Cengage Learning,
ISBN: 9781337619202

Solutions

Chapter
Section
Chapter 10, Problem 9P
Textbook Problem

Just Say No to Rugs is a manufacturer of high-quality prefinished wood flooring. Their customer base consists of private consumers, building and supply retailers, and construction companies. The company purchases unfinished exotic woods, stains, and finishes from numerous suppliers. The following describes the company’s purchases and cash payments procedures.

The inventory control clerk monitors raw material and finished goods inventory levels. When raw materials drop to a predetermined reorder point, the clerk prepares a purchase requisition, which the clerk sends to the purchasing agent, who prepares five copies of a purchase order. Two copies are sent directly to the vendor. One is used to post to the purchases journal and is then placed in an open purchase order file. The AP and the receiving departments also each receive a copy each of the purchase order, which they file temporarily. Each week, the purchasing agent prepares a journal voucher from the purchases journal and sends it to the general ledger department for posting.

Upon receiving the raw materials, the receiving department clerk creates four copies of the receiving report. One copy is sent to the raw materials warehouse, and one copy is sent to the AP department. One copy is sent to the inventory control department where it is used to update the inventory records. The final copy is sent to the purchasing department where it is filed.

Vendors send their invoices to the AP department, where they are reconciled with the receiving reports and purchase orders. The AP clerk then creates an AP record in the AP subsidiary ledger.

On the AP due date, the AP clerk sends the purchase order, receiving report, and invoice to the cash disbursement clerk who prepares a check and sends it to the vendor. After preparation of the checks, the supporting documents are sent back to the AP department. Each week, the AP clerk sends a journal voucher to the general ledger department for posting to the control accounts.

Required

  1. a. Prepare the REA model to support the purchase and cash payments process.
  2. b. Show the cardinalities for all associations.
  3. c. List the tables, keys, and attributes needed to implement this model in a relational database.

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Chapter 10 Solutions

Accounting Information Systems
Ch. 10 - Why are journals and ledgers not modeled in an REA...Ch. 10 - Define association.Ch. 10 - Define cardinality.Ch. 10 - Name the four basic forms of cardinality.Ch. 10 - What is view integration?Ch. 10 - List the steps involved in view integration.Ch. 10 - What is the rule for assigning foreign keys in a...Ch. 10 - What is the rule for assigning foreign keys in a...Ch. 10 - What is the rule for assigning foreign keys in an...Ch. 10 - Define value chain.Ch. 10 - From the perspective of an organization, explain...Ch. 10 - Explain the relationship between cardinality and...Ch. 10 - Discuss the rules for assigning primary keys to...Ch. 10 - Discuss the rules for linking events to resources...Ch. 10 - How are external and internal agents modeled in...Ch. 10 - Explain how REA databases are able to support...Ch. 10 - Distinguish between economic events and support...Ch. 10 - Describe the minimum number and types of events...Ch. 10 - Why are traditional accounting events, such as...Ch. 10 - ER diagrams usually include the link tables in the...Ch. 10 - Employee time is a resource that is always used...Ch. 10 - When are data in 3NF?Ch. 10 - Each economic event in an REA diagram is always a....Ch. 10 - Which of the following is not a characteristic of...Ch. 10 - Which of the following events would be LEAST...Ch. 10 - Which of the following associations would most...Ch. 10 - Which of the following tables would most likely...Ch. 10 - Which of the following associations requires a...Ch. 10 - When assigning foreign keys in a 1:1 association...Ch. 10 - When assigning foreign keys in a I:M association,...Ch. 10 - The concept of duality means that an REA diagram...Ch. 10 - Which of the following is true? a. REA diagram...Ch. 10 - Describe the three differences between REA...Ch. 10 - Bentley Restorations Company restores and sells...Ch. 10 - Based on the data in Problem 2, which of the...Ch. 10 - Based on the data in Problem 2, which of the...Ch. 10 - Prepare an REA model depicting the issuance of raw...Ch. 10 - Cryogenics Inc., is a leading developer, designer,...Ch. 10 - Based on the general information about Cryogenics...Ch. 10 - Adirondacks Classic Furniture (ACF) manufactures a...Ch. 10 - Just Say No to Rugs is a manufacturer of...Ch. 10 - Lets Go Camping (LGC) is an outdoor equipment...

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