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CASE A: Fred’s Electrical, Inc. (Cash Receipts Process)
Fred’s Electrical, Inc. sells electrical parts to electrical contractors in the northwest- ern United
States. Fred’s customers mail their payments—attached to the stub (i.e., remittance advice [RA])
from their monthly statement—to Fred’s accounts receivable (AR) office. An AR clerk confirms
that the check amount agrees with the amount on the RA and sends the checks to the cashier. The
AR clerk prepares batch totals of the customer numbers, invoice numbers, and amount paid. The
AR clerk then enters the batch totals and RAs into the computer, where the AR master data are
updated to record the payment. The computer reconciles the batch totals, confirms job comple-tion, and reports discrepancies, if any, to the AR clerk.

For the case assigned by your instructor,19 complete the following requirements, using software
where diagrams are required:
 a.Prepare a table of entities and activities.
b.Draw a context diagram.
c.Draw a physical data flow diagram (DFD).
d.Prepare an annotated table of entities and activities. Indicate on this
table the groupings, bubble numbers, and bubble titles to be used in
preparing a level 0 logical DFD.
e.Draw a level 0 logical DF

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