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ACC/542-Ian’s place sells pet supplies to dog and cat owners.

01 / 10 / 2021 Projects

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ACC/542-Ian’s place sells pet supplies to dog and cat owners.

Ian’s place sells pet supplies to dog and cat owners. To sell its products, the marketing departmentrequires sales personnel to call on the pet store retailers within their assigned geographic territories.Salespeople have an application on their mobile phones that allows them to record sales orders andsend these sales orders directly to the company network for updating the company’s sales order file.Each day, warehouse personnel review the current sales orders in its file, and where possible, pickthe goods and ready them for shipment. (Ian’s Place ships goods via common carrier, and shippingterms are generally FOB from the shipping point.) When the shipping department completes ashipment, it also notifies the billing department, which then prepares an invoice for the customer.Payment terms vary by customer, but most are "net 30." When the billing department receives apayment, the billing clerk credits the customer’s account and records the cash received.1. Identify the resources, events, and agents involved in the revenue process at Ian’s Place.ResourcesInventory – pet supplies sold to pet store retailersCash – generated from sales/sales orderMobile phone appSales order filesWarehouse equipmentEventsRecord sales orders – done by salespeople using mobile phone appReview sales orders – done by warehouse personnel using sales order filesReady goods for shipment – done by warehouse personnel using warehouse equipmentShip goods – done by shipping department personnel via common carrierReceive payment – done by billing department personnel (cash received)Notifying the billing department is not an economic event because there is not a transfer ofresources however it could be a business event because if the customers are not paying withinthe payment terms it could generate a management decision as this effects cash availableAgentsSalespeopleCustomers – pet store retailersWarehouse personnelShipping department personnelBilling department personnel

International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

Company # 11483120

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