Accounting Information Systems 7th Edition by Cynthia Heagy,Constance Lehmann

Exercise 3

Refer to the example in the chapter regarding advertising expense accounts required for a department store. Assume that the store's accounting software permits a general ledger account number with the following attributes:
• The first field consisting of three digits uniquely identifies the account, distinguishing it from other general ledger accounts, and places it in the correct location in the chart of accounts.
• The second field has four digits, each of which may be used as individual fields or used in combination.
The report writer for the software package permits you to use the question mark (?) as a wildcard symbol when specifying which accounts to include in a report. For example, the specification 330.?4?? includes in a report ail accounts having the first field equal to 330 and the second digit in the second field equal to 4.
Required:
Assuming that 640 is the number assigned for the first field of the advertising expense account, design and describe a system for classifying the various advertising accounts so you could design reports showing the five combinations of advertising expense accounts listed and numbered 1 to 5 in the section, "Application of Coding to Accounting Systems."