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Write a response to Cory. Explain your position.

Write a response to Cory. Explain your position.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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2. Helen Hunt and Cory Coates, two salespersons in adjoining territories, regularly compete for bonuses. During the last month, their dollar volume of sales, on which the bonuses are based, was nearly equal. On the last day of the month, both made a large sale. Both orders were shipped on the last day of the month and both were received by the customer on the fifth of the following month. Helen's sale was FOB shipping point, and Cory's was FOB destination. The company "counts" sales for purposes of calculating bonuses on the date that ownership passes to the purchaser. Helen's sale was therefore counted in her monthly total of sales, Cory's was not. Cory is quite upset. She has asked you to just include it, or to take Helen's off as well. She also has told you that you are being unethical for allowing Helen to get a bonus just for choosing a particular shipping method. Write a response to Cory. Explain your position.
Transcribed Image Text:2. Helen Hunt and Cory Coates, two salespersons in adjoining territories, regularly compete for bonuses. During the last month, their dollar volume of sales, on which the bonuses are based, was nearly equal. On the last day of the month, both made a large sale. Both orders were shipped on the last day of the month and both were received by the customer on the fifth of the following month. Helen's sale was FOB shipping point, and Cory's was FOB destination. The company "counts" sales for purposes of calculating bonuses on the date that ownership passes to the purchaser. Helen's sale was therefore counted in her monthly total of sales, Cory's was not. Cory is quite upset. She has asked you to just include it, or to take Helen's off as well. She also has told you that you are being unethical for allowing Helen to get a bonus just for choosing a particular shipping method. Write a response to Cory. Explain your position.
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