Pete Harsh and Sara Alper are both cash register clerks for Farmers' Markets. Gina Majed is the

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Pete Harsh and Sara Alper are both cash register clerks for Farmers' Markets. Gina Majed is the store manager for Farmers' Markets. The following is an excerpt of a conversation between Pete and Sara:
Pete: Sara, how long have you been working for Farmers' Markets?
Sara: Almost five years this July. You just started two weeks ago . . . right?
Pete: Yes. Do you mind if I ask you a question?
Sara: No, go ahead.
Pete: What I want to know is, have they always had this rule that if your cash register is short at the end of the day, you have to make up the shortage out of your own pocket?
Sara: Yes, as long as I've been working here.
Pete: Well, it's the pits. Last week I had to pay in almost $50.
Sara: It's not that big a deal. I just make sure that I'm not short at the end of the day.
Pete: How do you do that?
Sara: I just short-change a few customers early in the day. There are a few jerks that deserve it anyway. Most of the time, their attention is elsewhere and they don't think to check their change.
Pete: What happens if you're over at the end of the day?
Sara: Majed lets me keep it as long as it doesn't get to be too large. I've not been short in over a year. I usually clear about $50 to $80 extra per day.
Discuss this case from the viewpoint of proper controls and professional behavior.

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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