Question

ETHICS CHALLENGE C1 P2 BTN 4-1 Amy Martin is a student who plans to attend approximately four professional events a year at her college. Each event necessitates a financial outlay of $100 to $200 for a new suit and accessories. After incurring a major hit to her savings for the first event, Amy developed a different approach. She buys the suit on credit the week before the event, wears it to the event, and returns it the next week to the store for a full refund on her charge card. Required 1. Comment on the ethics exhibited by Amy and possible consequences of her actions. 2. How does the merchandising company account for the suits that Amy returns?

1 and 2 please

Answer 1

aprofit". If everyone follows this practice Answers D Summatized the information provided in the question; Amy Martin is a student who plans to attend approximately four professional - © Ethically speaking the merchandise should only be retuoned if it is flawed somehow or if it she thought it would look or fit a certain way and it didn't but before weasing it out. However, Amy buys the clothes fully intending to use them for her events then return them. Amy Marotin purchasing a suit to wait a significant event and afterwards returning it to the store for credit would not be considered as illegal action however is an unethical poactice that has economic consequences. The retailers loose revenue when the goods returned, as they can no longer Gesell - them as new. Therefore, having to sell the item at a large discount. This to Compensate for the loss, the store either increase prices on products or "eat the losses and generate less to , are will then it will have a big impact on the economy.

() the retailer would discourage what Amy @ wants to do for several beasons; i) It is ethically grey at best. ii) Consumer-friendly stote policies are meant to help the shoppers when there is an actual problem which the actual problem within the clothes, not be taken adwaintage of. (i) there are companies that allows you to bent clothes for one use, rather than buying them.

majodity of the larger Getailers cheese the peopetual inventory system as business usually caroy products in laroge quantities, performing a physical count can be time consuming and difficult as well. On the general ledger, on the retuon of Army's suit, it will be; sales retuons & allowances Alc · D& $200 To accounts receivable Alc The other entry for merchandise was returnable to the company Merchandise Inventory Alc ---16 $100 To cost of goods sold ale $100 $200
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