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Helge Autoparts Sells New and Refurbished Auto Parts Exclusively to Auto

question 82

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Helge Autoparts sells new and refurbished auto parts exclusively to auto dealers.Helge purchases inventory from distributors at trade conventions.Each time Helge makes a purchase,the company records the suppliers name,address,date,specific items purchased,price paid for each,and the total amount spent.Helge later researches the inventory items to set the customer price.The company assigns an inventory number to each item purchased and records the customer price for each item.Helge buys price tags and display supplies from Alwin Incorporated,a company that sells them at all trade conventions.All inventory and supplies purchases are immediately paid for with cash or with checks from a bank account in Helge's name.All cash received from sales are also deposited to the same bank account.Several times a year Helge rents display space at dealer conventions.A deposit is always required,and the entire fee is due the day the convention starts.Helge records the deposit and final payment,along with the convention's name and address,in the same worksheet on which purchases of inventory and supplies are recorded.
Consider Helge's processes regarding the purchasing inventory and supplies,renting display space,and paying for purchased items.A well-designed REA diagram would

Definitions:

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded.

Bread Shortage

A situation where the supply of bread is insufficient to meet the demand, often resulting in increased prices and limited availability.

Supply Function

A mathematical representation showing the relationship between the quantity of a good that producers are willing to sell and the price of that good.

Groschens

Historically, small coins used in various European countries, symbolizing a small amount of currency.