You are Julia, a new Accounts Receivable Clerk for Nixon Paper and Office Supply. Toward the end

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You are Julia, a new Accounts Receivable Clerk for Nixon Paper and Office Supply. Toward the end of the month, Carol Reed, a very personable sales associate, tells you that the previous AIR clerk always recorded a Sales Invoice when she got a verbal agreement from a customer to buy paper or office supplies. She has a verbal order from her favorite customer for $10,000 of paper and wants you to create a Sales Invoice today. You know that in order to create a Sales Invoice you need a purchase order from the customer. You also know that Ms. Reed receives a monthly bonus based on the always recorded a Sales Invoice when she got a verbal agreement from a customer to buy paper or office supplies. If her sales are above $20,000, she gets a 10 percent bonus. Would you agree to record the sales of products before receiving the purchase order from the customer? What effect would it have on the customer, on the Sales Associate, on the company, and on the job?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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College Accounting A Contemporary Approach

ISBN: 978-0077639730

3rd edition

Authors: David Haddock, John Price, Michael Farina

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