Reference no: EM133035

Question :

Jerry Hasbrow, a sales representative for Penn Office Supplies Company, is compensated on a commission basis and gets a substantial bonus if he meets his annual sales goal. The company's recognition point for sales is the day of shipment. On 31^st December, Hasbrow realizes he needs sales of $2,000 to reach his sales goal and receive the bonus. He calls a purchaser for a local insurance company, whom he knows well, and asks him to purchase $2,000 worth of copier paper today. The purchaser says, "But Jerry, that's more than a year's supply for us." Hasbrow says, "Buy it today. If you decide it's too much, you will return however much you want for full credit next month." The purchaser says, "Okay, ship it." The paper is shipped on 31^st December and recorded as a sale. On January 15, the purchaser returns $1,750 worth of paper for full credit against the bill.

Should the shipment on 31^st December be recorded as a sale? Show the ethics of Hasbrow's