Question $12(2\mathrm{.}5$ points$)$

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

include nine unique entities.

include seven unique entities.

include ten unique entities.

include eight unique entities.