A friend was hired by a large company. She confides in you about a problem with her

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A friend was hired by a large company. She confides in you about a problem with her boss. Her boss is asking customers to sign a sales agreement just before the end of the year that indicates a sale has been made. Her boss then tells these customers that he will give them 30 days, which is well into next year, to change their minds. If they do not change their minds, then he sends the merchandise to them. If they change their minds, her boss agrees to cancel the orders, take back the merchandise, and cancel the invoices. Her boss gives the sales agreements to the Accounting Department, which prepares an invoice and records the sale. One of the accounting people keeps the invoices and shipping documents for these customers in a desk drawer until the customers either change their minds, in which case the sale is canceled, or until the merchandise is sent at the end of the 30-day waiting period.

Your friend likes the company very much, and she wants to keep her job. What would you advise her to do?

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Cost Accounting

ISBN: 9780256257113

4th Edition

Authors: Michael W. Maher, Edward B. Deakin

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