Yorkshire Bike Shop has a liberal return policy. A customer can return any product for a full
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• Store clerk issues a prenumbered return slip, refunds cash from the cash register, and keeps a copy of the return slip for review by the manager.
• Store clerk places the returned goods back on the shelf or on the floor as soon as possible.
Yorkshire uses a periodic inventory system.
Required
1. How can a dishonest store clerk steal from Yorkshire? What part of company policy enables the store clerk to steal without getting caught?
2. How can Yorkshire improve its internal controls to prevent this theft?
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Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
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