The following is an excerpt from a conversation between the store manager of Wholesome Grocery Stores, Kara Dahl, and Lynn Shutes, president of Wholesome Grocery Stores: Lynn: Kara, I’m concerned about this new scanning system. Kara: What’s the problem? Lynn: Well, how do we know the clerks are ringing up all the merchandise? Kara: That’s one of the strong points about the system. The scanner automatically rings up each item based on its bar code. We update the prices daily, so we’re sure the sale is rung up for the right price. Lynn: That’s not my concern. What keeps a clerk from pretending to scan items and then simply not charging his friends? If his friends were buying 10–15 items, it would be easy for the clerk to pass several items through putting his finger over the bar code or just pass the merchandise through the scanner with the wrong side showing. It would look normal for anyone observing. In the old days, we at least could hear the cash register ringing up each sale. Kara: I see your point. Suggest ways that Wholesome Grocery Stores could prevent or detect the theft of merchandise as described.

BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124
BuyFind

Financial Accounting

15th Edition
Carl Warren + 2 others
Publisher: Cengage Learning
ISBN: 9781337272124

Solutions

Chapter
Section
Chapter 8, Problem 7CP
Textbook Problem

The following is an excerpt from a conversation between the store manager of Wholesome Grocery Stores, Kara Dahl, and Lynn Shutes, president of Wholesome Grocery Stores:

Lynn: Kara, I’m concerned about this new scanning system.

Kara: What’s the problem?

Lynn: Well, how do we know the clerks are ringing up all the merchandise?

Kara: That’s one of the strong points about the system. The scanner automatically rings up each item based on its bar code. We update the prices daily, so we’re sure the sale is rung up for the right price.

Lynn: That’s not my concern. What keeps a clerk from pretending to scan items and then simply not charging his friends? If his friends were buying 10–15 items, it would be easy for the clerk to pass several items through putting his finger over the bar code or just pass the merchandise through the scanner with the wrong side showing. It would look normal for anyone observing. In the old days, we at least could hear the cash register ringing up each sale.

Kara: I see your point.

Chapter 8, Problem 7CP, The following is an excerpt from a conversation between the store manager of Wholesome Grocery Suggest ways that Wholesome Grocery Stores could prevent or detect the theft of merchandise as described.

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Chapter 8 Solutions

Financial Accounting
Ch. 8 - Identify each of the following as relating to (a)...Ch. 8 - Identify each of the following as relating to (a)...Ch. 8 - The following items may appear on a bank...Ch. 8 - The following items may appear on a bank...Ch. 8 - The following data were gathered to use in...Ch. 8 - The following data were gathered to use in...Ch. 8 - Prepare journal entries for each of the following:...Ch. 8 - Prepare journal entries for each of the following:...Ch. 8 - Financial data for Otto Company follow: a....Ch. 8 - Financial data for Bonita Company follow: a....Ch. 8 - Using Wikipedia (www.wikipedia.com), look up the...Ch. 8 - Jimmy Pace has recently been hired as the manager...Ch. 8 - Ramonas Clothing is a retail store specializing in...Ch. 8 - Pacific Bank provides loans to businesses in the...Ch. 8 - One of the largest losses in history from...Ch. 8 - An employee of JHT Holdings, Inc., a trucking...Ch. 8 - All-Around Sound Co. discovered a fraud whereby...Ch. 8 - A former chairman, CFO, and controller of...Ch. 8 - The procedures used for over-the-counter receipts...Ch. 8 - Sergio Flores works at the drive-through window of...Ch. 8 - The mailroom employees send all remittances and...Ch. 8 - The actual cash received from cash sales was...Ch. 8 - The actual cash received from cash sales was...Ch. 8 - Abbe Co. is a small merchandising company with a...Ch. 8 - Paragon Tech Company, a communications equipment...Ch. 8 - Identify each of the following reconciling items...Ch. 8 - Identify each of the following reconciling items...Ch. 8 - The following data were accumulated for use in...Ch. 8 - The following data were accumulated for use in...Ch. 8 - Accompanying a bank statement for Santee Company...Ch. 8 - An accounting clerk for Chesner Co. prepared the...Ch. 8 - The following June 30 bank reconciliation was...Ch. 8 - Alaska Impressions Co. records all cash receipts...Ch. 8 - Journalize the entries to record the following: ...Ch. 8 - Mattel, Inc., designs, manufactures, and markets...Ch. 8 - El Dorado Inc. has monthly cash expenses of...Ch. 8 - Capstone Turbine Corporation produces and sells...Ch. 8 - Amicus Therapeutics, Inc., is a biopharmaceutical...Ch. 8 - The following procedures were recently installed...Ch. 8 - Jeremiah Restoration Company completed the...Ch. 8 - The cash account for American Medical Co. at April...Ch. 8 - The cash account for Brentwood Bike Co. at May 1...Ch. 8 - Beeler Furniture Company deposits all cash...Ch. 8 - The following procedures were recently installed...Ch. 8 - Jeremiah Restoration Company completed the...Ch. 8 - The cash account for Stone Systems at July 31...Ch. 8 - The cash account for Collegiate Sports Co. on...Ch. 8 - Sunshine Interiors deposits all cash receipts each...Ch. 8 - Tehra Dactyl is an accountant for Skeds, Inc., a...Ch. 8 - During the preparation of the bank reconciliation...Ch. 8 - Wholesome and Happy Foods is a farm-to-family...Ch. 8 - The following is an excerpt from a conversation...Ch. 8 - The following is an excerpt from a conversation...Ch. 8 - The records of Parker Company indicate a July 31...Ch. 8 - TearLab Corp. is a health care company that...

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