The following exercises are based on the MallMart Company narrative. Review the narrative carefully before completing the exercise.

MallMart Company Layaway Plan. MallMart Company is a retail store that sells a wide variety of clothing, electronics, and household goods. Their layaway plan works as follows:

A customer selects a product to put on layaway and brings it to the customer service clerk. The clerk determines whether the particular item can be placed on layaway. Any item that is on sale, on clearance, or a seasonal item (e.g., lawn furniture) is not qualified. The customer completes a customer form with name, address, and telephone number and is assigned a customer account number. An invoice is prepared identifying the item and showing the total cost (including tax) less a 10 percent down payment that the customer must make immediately. The customer signs one copy of the invoice and returns it to the clerk. The customer gives the clerk cash or a check for the 10 percent payment. The product is tagged with the customer