Hardcase Luggage Shop is a small retail establishment located in a large shopping mall. This shop has implemented the following procedures regarding inventory items:a. Because the shop carries mostly high-quality, designer luggage, all inventory items are tagged with a control device that activates an alarm if a tagged item is removed from the store.b. Because the display area of the store is limited, only a sample of each piece of luggage is kept on the selling floor. Whenever a customer selects a piece of luggage, the salesclerk gets the appropriate piece from the store’s stockroom. Because all salesclerks need access to the stockroom, it is not locked. The stockroom is adjacent to the break room used by all mall employees.c. Whenever Hardcase Luggage Shop receives a shipment of new inventory, the items are taken directly to the stockroom. Hardcase’s accountant uses the vendor’s invoice to record the amount of inventory received.State whether each of these procedures is appropriate or inappropriate. If it is inappropriate, explain why.

Question

Hardcase Luggage Shop is a small retail establishment located in a large shopping mall. This shop has implemented the following procedures regarding inventory items:
a. Because the shop carries mostly high-quality, designer luggage, all inventory items are tagged with a control device that activates an alarm if a tagged item is removed from the store.
b. Because the display area of the store is limited, only a sample of each piece of luggage is kept on the selling floor. Whenever a customer selects a piece of luggage, the salesclerk gets the appropriate piece from the store’s stockroom. Because all salesclerks need access to the stockroom, it is not locked. The stockroom is adjacent to the break room used by all mall employees.
c. Whenever Hardcase Luggage Shop receives a shipment of new inventory, the items are taken directly to the stockroom. Hardcase’s accountant uses the vendor’s invoice to record the amount of inventory received.
State whether each of these procedures is appropriate or inappropriate. If it is inappropriate, explain why.

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Cullumber Company had the following assets on January 1, 2022. Item   Cost   Purchase Date   Use...

A: Journal: Journal is the book of original entry. Journal consists of the day-to-day financial transac...

Q: Which of the following nonmonetary exchange transactions may result in recorded gains or losses? A) ...

A: Non monetary assets exchange represents swaping of non-monetary assets between two entities. Accouti...

Q: Please give me step by step directions for answer Ch 26 pro 9 Activity Rates and Product Costs using...

A: (a) 

Q: Question 15 -/1 View Policies Current Attempt in Progress All Concord Corporation produces a product...

A: Given:Standard rate = $3.5 per poundActual Quantity = 3400 poundsActual Price = $11,424 for 3400 gal...

Q: Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming th...

A: (a)  

Q: For the fiscal year, sales were $191,350,000 and the cost of merchandise sold was $114,800,000.a. Wh...

A: a.Calculate the amount of gross profit.

Q: Which of the three methods of inventory costing— FIFO, LIFO, or weighted average cost—will in genera...

A: First-In-First-out (FIFO): FIFO is a method used for recording inventory sold. In this method the in...

Q: Mastery Problem   Instructions Chart of Accounts Labels and Amount Descriptions Income ...

A: 1. (a)

Q: A corporation issues $300,000, 8%, 5-year bonds on January 1, 2020 for $312,600. Interest is paid an...

A: Hence, $24,000 is the amount of cash interest. It is obtained by multiplying face value with the sta...