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K.L. Musical Instruments is a retail store that sells a variety of types of musical instruments. K.L. also has a repair shop to repair the instruments they sell. A purchasing agent is responsible for all purchases. Most of the items purchased are bought through manufacturer’s catalogs. Occasionally a manufacturer will send a sales representative to demonstrate a new instrument and the order will be placed through the sales representative. Shipment of all purchases is FOB destination and the manufacturer handles the payment of the freight. Several sales clerks are employed at K.L. They manage the store, assemble and display the instruments, service walk-in customers, make personal calls to some of the major accounts (such as schools with bands or orchestras), and deliver instruments sold to customers. Sales are made on account and for cash. Broken instruments are brought to the store by customers for servicing. A sales representative writes the repair orders. The instrument and repair order go to the Repair Department for service. Customers pick up the repaired instruments when they are completed. Krista and the store manager handle all personnel matters such as hiring, promoting, and firing. They also train the sales clerks. A bookkeeper is employed to handle accounting and develop other reports required by management to operate the business.
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