A Retail Employee Overcharges a Customer for an Item and Then

question 14

Multiple Choice

A retail employee overcharges a customer for an item and then pockets the difference. This practice is best identified as a(an) ______ crime.

• A) corporate
• B) occupational
• C) organizational
• D) professional

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collected, which is used as a contra asset to adjust the net value of accounts receivable.

Direct Write-off Method

An accounting approach where uncollectable debts are directly written off against income at the time they are deemed non-recoverable.

Percentage of Sales Method

A financial forecasting model that bases future sales, expenses, and other financial elements as a percentage of sales revenue.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.