Draw an REA diagram for the revenue cycle at ABC. You should include all entities, relationships and cardinalities.

Number each pair of minimum and maximum cardinalities in your drawing. On a separate sheet of paper, describe in words what each number means.

Example:

Cash (1,1) to (0, <) Cash Receipt

A cash account does not have to have a deposit but can have many deposits

A cash receipt has to be deposited into one and only one bank account At ABC, we distinguish between order and sales/shipment. A sale occurs once goods are shipped so the two terms are used interchangeably to represent the same event. In general, we require at least two to three days before we can ship the chocolates. Our production plan is fixed for two weeks. Therefore, we sometimes do not have the full quantity ordered in stock for the customer. In this case, send all the chocolate that we have and send the rest of the chocolate when it is ready. We have to record explicitly the actual quantities shipped for each product. We also record the actual price for each product on each invoice line. When there is a long delay, we sometimes give a small discount. There are no sales without products. We can ship multiple orders at a time. Additionally, we have walk in customers, resulting in sales without an order.