You just received a letter from one of your good customers complaining about the shipment of your product that he or she just received. Football season is approaching and the customer had ordered a large shipment of regulation size footballs. Instead, he or she received youth size footballs for half of the order. The customer is asking you what can be done about this mistake. Knowing that this client is located halfway across the country, it’s not feasible to just have him or her drop by your facility and trade out the footballs.
The customer also had a question about a line item on his or her invoice under shipping terms. It said FOB Destination and the customer noticed that he or she was charged freight, which the customer normally doesn’t have to pay. The customer wants to know if that is correct.
1. Write a letter to your customer explaining how you intend to handle this purchase return or this purchase allowance (you choose which one you’re going to do). Explain the accounting forms that will need to be prepared to document this transaction. Also address the customer’s concern about the shipping terms.