Aja could tell that this “patron” was not her store’s usual type. She could see he did not care about fashion, and the customers that came to her shop in the Jacksonville mall were all tuned in to the latest styles. He came up to the register and took two pairs of jeans and an expensive sweater out of a bag to return. He didn’t have a receipt. Aja looked at the garments. They weren’t even close to his size. She had not seen him before, but she knew there were shoplifters who had been stealing from her company’s stores throughout the state. They grabbed clothing from one location and returned it to another. He knew—and she knew—that her store had a loose return policy. Receipts were not required and cash was given. She knew it would be pointless to call security; there was no proof. She remained courteous and professional. Although his returns would not impact her own performance stats, she couldn’t help feeling angry. A month later when the company changed its policy, Aja was relieved.
Requirements
1. What factors does a company consider when it decides on a policy for returns?
2. How is theft of this type handled in the accounting system?