1) From the standpo standpoint int of an individual individual concerned concerned with with accounting accounting controls, discuss and evaluate Johnson Toy Company’s present policies for handling returned items. In the asence of policies clearly estalished with the return of items not sold it presents a prolem for the accounting department ecause they don’t have a real control in sales ecause if i f one of the retailers fail f ail to sell the products they have full freedom to return them, so the company never has an idea how many products they sell. !) "nswer #uestion #uestion 1, ut ut from the standpoin standpointt of an individual individual interested interested in mar$eting. The promotion of the product product may e a%ected ecause the the retailers have no commitment to the company and have no immediate need to sell the products ecause they can return them and don’t su%er losses, so the product ceases to e a consideration as premium and ecomes in any element in the stoc$ of retailers &) 'ropose 'ropose a policy policy for handling handling returns returns that should should e adopted adopted y the Johnson Toy Toy Company. Company. (e certain to list circumstances circumstances under which eception would e allowed. *hould it apply to the Jungle Jim dolls+. Items will only e returned if they su%er any prolem during transportation and evidence that the pac$aging has not een opened. "nother reason for a refund is that the items have a manufacturing defect. It should e noted that the company should have some type of insurance if products su%er damage when they are translated. ) *hould this this policy, policy, if adopted, adopted, e e printed printed and distriute distriute to all all of the retailers and that it should e less than a single doule-spaced page. 'repare such a statement. These policies should e distriuted to to all retailers, ut must e specied to apply from a certain date to avoid prolems with deliveries and orders that are currently in progress. The corresponding formalities must e fullled and delivered to the high command of the retailers and in turn another copy to the people who wor$ in distriution area. /) "ssume "ssume that it is decided decided to to prepare prepare a statement statement on return returns s to e distriuted to all retailers and that it i t should e less than a single doule-spaced page. 'repare such a statement.
Return Policy products by retailers "fter the purchase of these items they cannot e returned ecause sales failed for the retailers. 0nly return of the products is made if they present a manufacturing defect as
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2rong assemly of the components of the product. 2rong colors of the toys. -
3amaged pac$aging -
'roducts ro$en y damages when they were transported.
It notes that these issues should e reported up to 4 hours after delivery orders otherwise no returns will e accepted. 5) 0n the asis of the policy in your answer to #uestion &, develop instructions for the Johnson Toy Company distriution and accounting departments with respect to their roles and procedures in the handling of returns. 3istriution department should coordinate the reception of products. The accounting department should lead the accounting and reporting the reasons for returns, in turn to tell to distriution which is the most common cause of returns in order to avoid similar situations in a future. 6) "ssume that you are Cheryl 7uridi, the rm’s logistics manager. 3o you thin$ that the returns policy favored y the logistics manager would di%er from what would e est for the rm+ 2hy or why not. 8ogistics would e appropriate ecause the solution involves searching for other areas in order to achieve a solution that favors the overall conglomerate company 4 9ntil the policy you recommend in your answer to #uestion & ta$es e%ect, how would you handle the immediate prolem of retailer wanting to return unsold Jungle Jim the Jogger dolls+ "out this con:ict we cannot change the policies of delivery and unfortunately have to ta$e losses due to ad policies with the issue of returns. The idea of recycling parts of toys to create other is a good idea to reduce losses. "lso we can do a deal with the companies in order to sell the toys to others retailers.
