Tiny Toy Company Makes Toys and Sells Them to Retail

question 193

Essay

Tiny Toy Company makes toys and sells them to retail stores on account.The company has a December 31 year-end.In the past,Tiny Toy always sold on account but never offered sales discounts to its customers.However,this year on November 1,the beginning of the holiday sales season,Tiny Toy began offering stores terms of 2/90,n/120.The stores can return anything,no questions asked,but only after December 31.
Required:
A.Why would Tiny Toy offer such a liberal credit and return policy?
B.Put an X in the appropriate box to describe the effect of this credit and return policy on Tiny Toy's financial statements for this year.
C.Is Tiny Toy's new credit and return policy ethical?

Understand and calculate basic statistical measures such as mean, median, mode, and range.

Apply statistical principles to analyze and interpret data sets.

Recognize the impact of outliers in data analysis and identify them using the 1.5xIQR rule.

Construct and interpret various graphical representations of data including histograms, box plots, and bar graphs.

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Definitions:

Attitudes

A learned tendency to evaluate things in a certain way, which can include people, issues, objects, or events.

Low-Balling

A sales tactic where an initially low price is offered to lure in customers, only to increase it by revealing additional costs or fees later.

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Private Behaviors

Actions that individuals engage in away from the public eye or scrutiny, reflecting personal preferences or desires.