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1) From the standpoint of an individual concerned with 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 theydon’t have a real control in sales ecause if one of the retailers fail 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 1, ut from the standpoint of an individual interested

in mar$eting.

 The promotion of the product may e a%ected ecause 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 anyelement in the stoc$ of retailers

&) 'ropose a policy for handling returns that should e adopted y the

 Johnson Toy Company. (e certain to list 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 policy, if adopted, e printed and distriute to 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 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 that it is decided to prepare a statement on returns to e

distriuted to all retailers and that it 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.