Robert Shah, a sales representative for Quality Office SuppliesCorporation will receive a substantial bonus if he meets his annualsales goal. The company’s recognition point for sales is the day ofthe shipment. On December 31st, Shah realizes he needssales of $2000.00 to reach his sales goal and receive the bonus. Hecall a purchaser for a local insurance company, and asks him to buy$2000.00 worth of paper today. The purchaser says, “but Robert,that’s more than a year’s supply for us.” Shah says, “Buy it today.If you decide it’s too much, you can return however much you wantfor full credit next month”. The purchaser says “okay, ship it.”The paper shipped on December 31st and was recorded as asale. On January 15th, the purchaser returns $1750.00worth of paper for a full credit (approved by Shah) against thebill. Should the shipment at December 31st be recordedas a sale? Discuss the ethics of Shah’s actions.
