Big Fun Toys is a retailer of childrens toys. The accounts payable department is located at company
Question:
Big Fun Toys is a retailer of children’s toys. The accounts payable department is located at company headquarters in Boston, Massachusetts. The department consists of two full-time clerks and one supervisor. They are responsible for processing and paying approximately 2,000 checks each month. The accounts payable process begins with receipt of a purchase order from the purchasing department. The purchase order is held until a receiving report and the vendor’s invoice have been forwarded to accounts payable.
At that time, the purchase order, receiving report, and invoice are matched together by an accounts payable clerk, and payment and journal entry information are input to the computer. Payment dates are designated in the input, and these are based on vendor payment terms. Company policy is to take advantage of any cash discounts offered. If there are any discrepancies among the purchase order, receiving report, and invoice, they are given to the supervisor for resolution. After resolving the discrepancies, the supervisor returns the documents to the appropriate clerk for processing. Once documents are matched and payment information is input, the documents are stapled together and filed in a temporary file folder by payment date until checks are issued.
Requirement
Draw a context diagram and data flow diagram similar to those in Figures 5-3 and 5-4 for the company’s accounts payable process, using the symbols in Figure 5-2.
Accounts PayableAccounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Step by Step Answer:
Core concepts of accounting information systems
ISBN: 978-1118742938
13th edition
Authors: Jacob M. Rose, Mark G. Simkin, Carolyn Strand Norman