A Nike Salesperson Is Informed by a Retailer That Ten

question 93

Multiple Choice

A Nike salesperson is informed by a retailer that ten pairs of shoes are damaged and cannot be sold. After looking at the merchandise, the salesperson determines the damage occurred during the packaging process. What should the Nike salesperson do to handle this situation?

• A) Apologize to the client and state that the problem will not happen in the future.
• B) Inform the client that these kinds of losses are common in retail business.
• C) Try to convince the customer to buy some new merchandise.
• D) Help the customer dump the unsalable inventory.
• E) Return the merchandise and provide a refund.

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Definitions:

Adjusting Journal Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the correct period, ensuring the financial statements reflect accurate and up-to-date information.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset since it was acquired.

Depreciation Expense

Spreading the expense of a tangible asset over the period it's expected to be used.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific period, providing insight into its operating performance.