Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615



Accounting (Text Only)

26th Edition
Carl Warren + 2 others
ISBN: 9781285743615
Textbook Problem

Ethics in Action

Anstead Co. is experiencing a decrease in sales and operating income for the fiscal year ending October 31. Ryan Frazier, controller of Anstead Co., has suggested that all orders received before the end of the fiscal year he shipped by midnight, October 31, even if the shipping department must work overtime. Because Anstead Co. ships all merchandise FOB shipping point, it would record all such shipments as sales for the year ending October 31, thereby offsetting some of the decreases in sales and operating income Discuss whether Ryan Frazier is behaving in a professional manner.

To determine

FOB Shipping point:

FOB Shipping pointmeans that the buyer pays all costs incurred for the delivery of goods, once the goods are left from the supplier’s warehouse. The buyer becomes the owner of the goods in transit, when the goods are shipped by the seller is termed as FOB shipping point.

To discuss: if Ryan is behaving in a professional manner in the given scenario.


Yes. Ryan, Controller of A Company, is behaving ethical and professional manner. The company is following FOB shipping point method when shipping goods to its customers. Ryan has instructed that all the order that is received before the end of fiscal year has to be shipped by midnight. As the company follows merchandise FOB Shipping point, the company should record the sales in the current year October 31st...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why should policymakers care about GDP?

Brief Principles of Macroeconomics (MindTap Course List)

What are cookies, and why are they used?

Accounting Information Systems

PROJECT SELECTION Midwest Water Works estimates that its WACC is 10.5%. The company is considering the followin...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What is an overhead consumption ratio?

Cornerstones of Cost Management (Cornerstones Series)