Initially, the shipment should be recorded as a sale if the company is using accrual accounting. This is because revenues are recognized when they are realizable and are earned when the supplies are transferred to the client irrespective of the date that payment for the commodity is made. In this case, when goods are returned Journal entries should be done to reduce the number of receivables and to recognize the returns inwards. The journal entries are as follows;
Accounts receivables $2000
Revenues (sales) $2000
(To record sale of supplies on credit)
Sales return $2000
Accounts receivables $2000
(Related cost of goods sold adjustment)
Inventory $2000
Cost of goods sold $2000
(To record receipt of goods from the client)
It is unethical to make a false sale to receive the bonus. Similarly, such an act is illegal as the salesperson selfish actions result in losses for the company. Customers should be able to make free choices to buy or not to purchase a product. The seller should not coerce them or possibly manipulate them to accept supplies that they do not desire. The customer did not freely make a choice. The role of the salesperson is to persuade the client to buy, but the ultimate decision should be left to the buyer to decide whether to buy or not. Any attempt to force a customer to take something that they are not interested without their free will is unethical.
Delegate your assignment to our experts and they will do the rest.
The sales person employed unfair sales tactics to have the goods shipped to the client and to gain the bonus from the sale. In the actual sense, there was no trade in this case, and the employee worked fraudulently for personal gains. It is selfish for them to develop a scheme that earns them money while in an actual sense no sale took place. The sales person exploited the company policy to enrich themselves from the bonus while apparently knowing that the goods will be returned later.
References
Edmonds, T. P., Edmonds, C. T., McNair, F. M., & Olds, P. R. (2016). Fundamental financial accounting concepts . New York, NY: McGraw-Hill Education.
Tenbrunsel, M. H. (2014, July 31). Ethical Breakdowns. Retrieved May 29, 2017, from https://hbr.org/2011/04/ethical-breakdowns
