Meridian Clothing is a retail store specializing in womens clothing. The store has established a liberal return
Question:
a. How can sales clerks employed at Meridian Clothing use the store’s return policy to steal money from the cash register?
b. What internet control weaknesses do you see in the return policy that make cash thefts easier?
c. Would issuing a store credit in place of a cash refund for all merchandise returned without a receipt reduce the possibility of theft? List some advantages and disadvantages of issuing a store credit in place of a cash refund.
d. Assume that Meridian Clothing is committed to the current policy of issuing cash refunds without a receipt. What changes could be made in the store’s procedures regarding customer refunds in order to improve internal control?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted: