College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 10, Problem 1EC
1.
To determine
Indicate whether RS’s act is unethical or not with reasons.
2.
To determine
Indicate the action of the sales manager.
3.
To determine
Draft a memorandum to RS, the sales manager, explaining the reasons for the credit policy of the company.
4.
To determine
Indicate some ways to prevent the situation like the one that occurred in the given case.
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Wholesale Health Supply sells a variety of medical equipment and supplies to retailers. When a new retailer is approved for credit, one of the criteria is that the retailer must have been in business for at least six months. Good Earth Foods placed a large order with Wholesale Health Supply and requested credit terms. Wholesale Health Supply faxed a credit request form to Good Earth Foods, and the buyer at Good Earth Foods faxed the completed form back to Wholesale Health Supply. Robin Sylvester, the sales manager at Wholesale Health Supply, saw the credit application and noticed Good Earth Foods had only been in business for two months. Thinking she might lose the order if Good Earth Foods wasn’t extended credit, Robin authorized the shipment. She figured by the time the credit department rejected the application, Good Earth Foods would have received the order and the vice president would override the rejection to keep a new customer. Robin was sure that everything would turn out…
Wholesale health supply sells a variety of medical equipment and supplies to retail must have been in business for at least six months, good earths foods placed a large order with wholesale health supply and requested credit terms. Wholesale health Supply faxed a credit request from to good Earth foods and the lawyer at good Earth food facts the completed form back to wholesale health supply. Robin Sylvester the sales manager at the wholesale health supply saw the credit application and noticed good earth has only been in business for two months.Thinking she might lose the order if good Earth food wasn't extended credit. Robin authorize the shipment. She figured by the time the credit department rejected the application good earth would have received the order in the vice president would have override the rejection to keep a new customer. Robin was sure that everything would turn all right.
Do you think Robin's decision to ship the order was unethical? Why or why not?
what would you…
Freesure Company manufactures and sells commercial refrigerators. It is currently running a promotion in which it
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rebate must be returned within 90 days of purchase. Given its historical experience and the ease of obtaining a
rebate, Freesure expects all qualifying customers to receive the rebate.
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Chapter 10 Solutions
College Accounting, Chapters 1-27
Ch. 10 - Prob. 1TFCh. 10 - All sales, for cash or on credit, can be recorded...Ch. 10 - Sales Tax Payable is a liability account that is...Ch. 10 - Prob. 4TFCh. 10 - Prob. 5TFCh. 10 - A credit sale of 250 plus a 6% sales tax would...Ch. 10 - When 25 of merchandise is returned for a credit on...Ch. 10 - Prob. 3MCCh. 10 - Prob. 4MCCh. 10 - Prob. 5MC
Ch. 10 - Prob. 1CECh. 10 - Prepare journal entries for the following sales...Ch. 10 - Prob. 3CECh. 10 - On March 24, MS Companys Accounts Receivable...Ch. 10 - Prob. 1RQCh. 10 - What is the purpose of a credit memo?Ch. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - What steps are followed in posting cash receipts...Ch. 10 - What steps are followed in posting cash receipts...Ch. 10 - Prob. 9RQCh. 10 - Prob. 1SEACh. 10 - SALES TRANSACTIONS AND T ACCOUNTS Using T accounts...Ch. 10 - Prob. 3SEACh. 10 - SALES RETURNS AND ALLOWANCES ADJUSTMENT At the end...Ch. 10 - Prob. 5SEACh. 10 - JOURNALIZING SALES TRANSACTIONS Enter the...Ch. 10 - Prob. 7SEACh. 10 - JOURNALIZING CASH RECEIPTS Enter the following...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE From the accounts...Ch. 10 - SALES TRANSACTIONS J. K. Bijan owns a retail...Ch. 10 - Prob. 11SPACh. 10 - SALES AND CASH RECEIPTS TRANSACTIONS Sourk...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE Based on the...Ch. 10 - Prob. 1SEBCh. 10 - SALES TRANSACTIONS AND T ACCOUNTS Using T accounts...Ch. 10 - Prob. 3SEBCh. 10 - SALES RETURNS AND ALLOWANCES ADJUSTMENT At the end...Ch. 10 - Prob. 5SEBCh. 10 - JOURNALIZING SALES TRANSACTIONS Enter the...Ch. 10 - JOURNALIZING SALES RETURNS AND ALLOWANCES Enter...Ch. 10 - JOURNALIZING CASH RECEIPTS Enter the following...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE From the accounts...Ch. 10 - SALES TRANSACTIONS T. M. Maxwell owns a retail...Ch. 10 - CASH RECEIPTS TRANSACTIONS Color Florists, a...Ch. 10 - SALES AND CASH RECEIPTS TRANSACTIONS Paul Jackson...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE Based on the...Ch. 10 - You and your spouse have separate charge accounts...Ch. 10 - Prob. 1ECCh. 10 - Geoff and Sandy Harland own and operate Wayward...Ch. 10 - Enter the following transactions in a general...
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