Discuss the ethics of shah action

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Reference no: EM13138925

Robert shah , a sale representative for quality supplies corporation is compensated on a commission basis and received a substantial bonus for meeting his annual sales goal.The company's recognition point for sales is the day of shipment. On December 31st, shah 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 ask him to buy $2,000 worth of copier paper today. The purchaser says , "But Jerry, that's more than a year 's supply for us."Shah says, "Buy it today , If you decide it's to 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 Shah) against the bill. Should the shipment on the December 31 be recorded as a sale? Discuss the ethics of Shah's action.

Reference no: EM13138925

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