(Solved by Humans)-Problem 5-68B INTERNAL CONTROL FOR SALES Johnson Tires has three stores. Each store manager is...

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Problem 5-68B  INTERNAL CONTROL FOR  SALES Johnson  Tires has three stores. Each store manager is paid a salary plus a bonus on the   sales made  by his or  her store. On January 5, 2010, Kevin Sampson, manager of one of    the stores, resigned. Kevin’s store had doubled its expected December 2009 sales, pro- ducing a bonus for Kevin of $7,000 in December alone. Jason Jones, an assistant man-     ager at another store, was assigned as manager of Kevin Sampson’s store. Upon examination of the store’s accounting records, Jason reports to Johnson that the store’s records indicated sales returns and allowances of $124,000 in the  first  four  days  of  January 2010,  an amount equal  to about  half  of December 2009  sales.   Required: 1.     Explain what the large amount of sales returns and allowances suggest that Kevin Sampson might have done. 2.     Determine how Johnson could protect itself from a manager who behaved as Kevin Sampson did.  

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This question was answered on: 10 May, 2025

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(Solved by Humans)-Problem 5-68B INTERNAL CONTROL FOR SALES Johnson Tires has three stores. Each store manager is...


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