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IRAC Scenario Jack calls FTD flowers and the following conversation occurs with Jill from...

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Accounting

IRAC Scenario

Jack calls FTD flowers and the following conversation occurs with Jill from FTD.

Jack: Hello, I would like to order 12 dozen red roses for my mother for Mothers Day. She lives in Glendora, CA.

Jill: The current price for 12 dozen red roses (144 roses) is $599, we take Visa, MasterCard and American Express, and that price includes delivery anywhere in Glendora.

Jack: Wow, sounds good! Heres my credit card information, Ill take the 12 dozen roses.

FTD contracts with Flowers R Us (FRU) to deliver flowers in the Glendora area. FRU contacts mom the day before the delivery to confirm her address. Mom was very excited for the upcoming delivery, because just yesterday she had ordered flowers from ABC flowers for a funeral she was attending. Mom decided to bring her sons flowers to the funeral and canceled her order with ABC Flowers.

The next day the delivery person from FRU showed up to moms front door with the 12 dozen yellow flowers and asked for an additional $100. FRU states that they couldnt deliver the flowers because FTD should have charged her son $699. Although Mom reluctantly pays the extra $100 for the 12 dozen roses, she is not satisfied because Jack was promised 12 dozen red roses not yellow roses.

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