Amy Martin is a student who plans to attend approximately four professional events a year at her college. Each event necessitates a financial outlay of $100 to $200 for a new suit and accessories. After incurring a major hit to her savings for the first event, Amy developed a different approach. She buys the suit on credit the week before the event, wears it to the event, and returns it the next week to the store for a full refund on her charge card. Required 1. Comment on the ethics exhibited by Amy and possible consequences of her actions. 2. How does the merchandising company account for the suits that Amy returns?
Amy Martin is a student who plans to attend approximately four professional events a year at her college. Each event necessitates a financial outlay of $100 to $200 for a new suit and accessories. After incurring a major hit to her savings for the first event, Amy developed a different approach. She buys the suit on credit the week before the event, wears it to the event, and returns it the next week to the store for a full refund on her charge card. Required 1. Comment on the ethics exhibited by Amy and possible consequences of her actions. 2. How does the merchandising company account for the suits that Amy returns?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Amy Martin is a student who plans to attend approximately four professional events a year at
her college. Each event necessitates a financial outlay of $100 to $200 for a new suit and accessories.
After incurring a major hit to her savings for the first event, Amy developed a different approach. She
buys the suit on credit the week before the event, wears it to the event, and returns it the next week to the
store for a full refund on her charge card.
Required
1. Comment on the ethics exhibited by Amy and possible consequences of her actions.
2. How does the merchandising company account for the suits that Amy returns?
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