Mastery Problem

Supply faxed a credit request rom form back to Wholesale Health Supply. Robotio Earth Foods faxed the completed form back to Wealth Supply, saw the credit application Sylvester, the sales manager at Wholesale Healt in business for two months. Thimk. ing she might lose the order if Good Earth Foods wasn't extended credit, Roobin authorized the shipment. She figured by the time the credit department rejected the application, Good Earth Foods would have received the order and the vice presidere would override the rejection to keep a new customer. Robin was sure that everything would turn out alright. 1. Do you think Robin's decision to ship the order was unethical? Why or why not? 2. What would you have done if you were in Robin's position? 3. Write a memo from the credit department manager to Robin Sylvester explaining the reasoning behind requiring a new credit customer to be in business for at least six months. 4. In small groups, discuss ways to prevent a situation like this from happening. MASTERY PROBLEM Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, "If your pet is not becoming to you, he should be coming to us." The Harlands maintain a sales tax payable account throughout the month to account for the 6% sales tax. They use a general journal, general ledger, and accounts receivable ledger. The following sales and cash collections took place during the month of September: Sept. 2 Sold a fish aquarium on account to Ken Shank, \$125 plus tax of $7.50, terms n/30. Sale No. 101. 3 Sold dog food on account to Nancy Truelove, $68.25 plus tax of $4.10, terms n/30. Sale No, 102 . 5 Sold a bird cage on account to Jean Warkentin, \$43.95 plus tax of $2.64, terms n/30. Sale No. 103 . 8 Cash sales for the week were $2,332.45 plus tax of $139.95. 10 Received cash for boarding and grooming services, $625 plus tax of $37.50. 11 Jean Warkentin stopped by the store to point out a minor defect in the bird cage purchased in Sale No. 103. The Harlands offered a sales allowance of $10 plus tax on the price of the cage which satisfied Warkentin. 12 Sold a cockatoo on account to Tully Shaw, $1,200 plus tax of $72, terms n/30. Sale No. 104. 14 Received cash on account from Rosa Alanso, \$256. 15 Rosa Alanso returned merchandise, $93.28 including tax of $5.28. 15 Cash sales for the week were $2,656.85 plus tax of $159.41. 16 Received cash on account from Nancy Truelove, $58.25. 18 Received cash for boarding and grooming services, $535 plus tax of $32.10. 19 Received cash on account from Ed Cochran, \$63.25. 20 Sold pet supplies on account to Susan Hays, $83.33 plus tax of $5, terms n/30. Sale No. 105 . 21 Sold three Labrador Retriever puppies to All American Day Camp, $375 plus tax of $22.50, terms n/30. Sale No. 106 . 22 Cash sales for the week were $3,122.45 plus tax of $187.35. 23 Received cash for boarding and grooming services, $515 plus tax of $30.90. 25 Received cash on account from Ken Shank, \$132.50. 26 Received cash on account from Nancy Truelove, $72.35. 27 Received cash on account from Joe Gloy, \$273.25. 28 Borrowed cash to purchase a pet limousine, $11,000. 29 Cash sales for the week were $2,835.45 plus tax of $170.13. 30 Received cash for boarding and grooming services, $488 plus tax of $29.28. (continued) Supply faxed a credit request rom form back to Wholesale Health Supply. Robotio Earth Foods faxed the completed form back to Wealth Supply, saw the credit application Sylvester, the sales manager at Wholesale Healt in business for two months. Thimk. ing she might lose the order if Good Earth Foods wasn't extended credit, Roobin authorized the shipment. She figured by the time the credit department rejected the application, Good Earth Foods would have received the order and the vice presidere would override the rejection to keep a new customer. Robin was sure that everything would turn out alright. 1. Do you think Robin's decision to ship the order was unethical? Why or why not? 2. What would you have done if you were in Robin's position? 3. Write a memo from the credit department manager to Robin Sylvester explaining the reasoning behind requiring a new credit customer to be in business for at least six months. 4. In small groups, discuss ways to prevent a situation like this from happening. MASTERY PROBLEM Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, "If your pet is not becoming to you, he should be coming to us." The Harlands maintain a sales tax payable account throughout the month to account for the 6% sales tax. They use a general journal, general ledger, and accounts receivable ledger. The following sales and cash collections took place during the month of September: Sept. 2 Sold a fish aquarium on account to Ken Shank, \$125 plus tax of $7.50, terms n/30. Sale No. 101. 3 Sold dog food on account to Nancy Truelove, $68.25 plus tax of $4.10, terms n/30. Sale No, 102 . 5 Sold a bird cage on account to Jean Warkentin, \$43.95 plus tax of $2.64, terms n/30. Sale No. 103 . 8 Cash sales for the week were $2,332.45 plus tax of $139.95. 10 Received cash for boarding and grooming services, $625 plus tax of $37.50. 11 Jean Warkentin stopped by the store to point out a minor defect in the bird cage purchased in Sale No. 103. The Harlands offered a sales allowance of $10 plus tax on the price of the cage which satisfied Warkentin. 12 Sold a cockatoo on account to Tully Shaw, $1,200 plus tax of $72, terms n/30. Sale No. 104. 14 Received cash on account from Rosa Alanso, \$256. 15 Rosa Alanso returned merchandise, $93.28 including tax of $5.28. 15 Cash sales for the week were $2,656.85 plus tax of $159.41. 16 Received cash on account from Nancy Truelove, $58.25. 18 Received cash for boarding and grooming services, $535 plus tax of $32.10. 19 Received cash on account from Ed Cochran, \$63.25. 20 Sold pet supplies on account to Susan Hays, $83.33 plus tax of $5, terms n/30. Sale No. 105 . 21 Sold three Labrador Retriever puppies to All American Day Camp, $375 plus tax of $22.50, terms n/30. Sale No. 106 . 22 Cash sales for the week were $3,122.45 plus tax of $187.35. 23 Received cash for boarding and grooming services, $515 plus tax of $30.90. 25 Received cash on account from Ken Shank, \$132.50. 26 Received cash on account from Nancy Truelove, $72.35. 27 Received cash on account from Joe Gloy, \$273.25. 28 Borrowed cash to purchase a pet limousine, $11,000. 29 Cash sales for the week were $2,835.45 plus tax of $170.13. 30 Received cash for boarding and grooming services, $488 plus tax of $29.28. (continued)