Discussion - I t is unethical because the merchant loses...

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It is unethical because the merchant loses money. Sometimes the merchant can put it back on the shelves if the outfit appears to be unworn but most places have to discount the returns and sell off on a clearance rack so the store loses money. Merchants usually pay for a service to be able to accept credit cards so each swipe of a card can cost the store a transaction fee too. Amy could wear the first outfit that she purchased to the second event if she can’t afford to purchase another outfit. The transactions for the return would be: Debit Sales Returns and Allowances, Credit Accounts Receivable Debit Merchandise Inventory Credit Cost of Goods Sold There would not be a debit to sales. The debit would be to sales returns and allowances, a contra revenue account to sales. dr sales returns and allowances cr cash/accounts receivable A debit to sales, for sales returns and allowances and sales discounts, would not be
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Discussion - I t is unethical because the merchant loses...

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