Question: We Fix Computers Inc provides spare parts and service for a wide

We-Fix-Computers, Inc. provides spare parts and service for a wide variety of computers. Customers may purchase parts to take home for do-it-yourself repairs, or they may bring their systems in for repair, in which case they pay for both the parts and the labor associated with the type of service required. Some services do not include any new parts, just a labor charge for that service. Individual customers must pay for all parts purchases in full at the time of sale. Individual customers must pay 50% down when they bring their computers in for servicing and pay the balance at pickup. Corporate customers, however, are billed monthly for all sales (parts or service). Although We-Fix-Computers, Inc. has several different banking accounts, all sales are deposited intact into its main checking account.

We-Fix-Computers, Inc. purchases its inventory of parts from more than a dozen different vendors. Orders are usually delivered the next day; sometimes, however, suppliers ship only partial orders. We-Fix-Computers pays for some of its purchases COD, but usually pays by the 10th of the month for all purchases made the prior month. None of its suppliers allows it to make installment payments.

Draw an integrated REA diagram for We-Fix-Computers’ revenue and expenditure cycles.

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  • CreatedDecember 19, 2014
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