Reference no: EM131884244

Question: 1. Suppose that you are a sales representative for a major office supply business and that you get paid a commission plus a yearly bonus if your sales exceed a certain amount. In addition to working full time, you are a student at Berkeley College majoring in Accounting. Even though you love being a student and you're so happy with your choice of major, paying the tuition bill every quarter has been a financial challenge for you. On December 30th, you realize that if you can sell another $2000 of merchandise, you qualify for that much needed bonus. You also know that your company has a policy of accepting returned merchandise. Since you are such a good salesperson, you have very good relationships with all of the businesses that buy supplies from you. You really need that bonus, so you call one of your clients and ask them to buy $2000 of goods. The client tells you that he really doesn't have a need for any merchandise for the next 6 months. You ask the client for a favor and tell him that if he buys the supplies he can return them in 2 weeks. The client agrees and tells you to ship the goods. On January 16, the client sends the goods back. Should the shipment made on December 30 count as a sale? Please make sure that you include information about the Revenue Recognition Principle in your post. Discuss the ethics of your action as a salesperson.

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