Bonnie makes and sells her own jewelry over the Internet. A customer browses Bonnie’s catalog online and fills out a sales order. The sales order is transmitted electronically to Bonnie, who checks her inventory for each item ordered.
If the item is on hand, Bonnie packs it securely and ships it to the customer via a common carrier. If the item is not on hand, Bonnie e-mails the client with an expected shipment date; at that point, the customer must agree to wait until the expected shipment date or cancel the order. Bonnie encloses an invoice with all shipped merchandise; the client sends a check directly to Bonnie’s bank for deposit. The bank reports all deposits to Bonnie on a weekly basis; Bonnie reconciles her bank account every day.
a. In a format specified by your instructor, document Bonnie’s sales/collection process.
b. What are Bonnie’s risk exposures? What internal controls does she have in place to address them? Which additional internal controls would you recommend?
c. Create database specifications for Bonnie’s inventory and customer tables. Also create database specifications for any required junction tables.