Reference no: EM133014565
Question - Jerry Hasbrow, a sales representative for Penn Office Supplies, is compensated on a commission basis and receives a substantial bonus for meeting his annual sales goal. The company's recognition point for sales is the day of shipment. On December 31, Hasbrow realizes he needs sales of $2,000 to reach his sales goal and receive the bonus. He calls a purchaser for a local insurance company, whom he knows well, and asks him to buy $2,000 worth of copier paper today. The purchaser says, "Nut Jerry, that's more than a year's supply for us." Hasbrow says, "Buy it today. If you decide it's too much, you can return however much you want for full credit next month." The purchaser says, "Okay, ship it."
The paper is shipped on December 31 and recorded as a sale. On January 15, the purchaser returns $1,750 worth of paper for full credit (approved by Hasbrow) against the bill.
-Should the shipment on December 31 be recorded as a sale?
-Discuss the ethics of Jerry Hasbrow's action.
-What biblical principles can/do/should apply?