Amy Martin is a student who plans to attend approximately 4 professional events a year after college. Each event necessitates a finacial 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 deifferent 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 charged 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?
Elaborate in about 500 words, using references and examples.
Book: “Fundamental Accounting Principles” Vol. 1 Ch. 1-12 (John J. Wild, Ken W. Shaw, Barbara Chiappetta)
0 comments