Depending on employs studious with company mean weather they are new and still training or if they have been with the company for a long time will determine the punishment for the error and how many times they have made this error.

Can you please explain this further? Also, what error have they made that you are referring to.

would then have to go to my A/R account and make adjustment for credit memos that said they were returned but in fact were not and are still in my inventory.

What would the adjustment be? What general ledger accounts would you be adjusting?