week 4a discussion 4 principles of acctg 495484

Discussion board 4: Please read the Ethical Issue in Chapter 5 on page 301. In your first post please address the following: 1 – Under Dobbs FOB policy, when should the company record a sale? 2 –Do you approve or disapprove of Dobb’s manner of deciding when to ship goods to customers and record the sales revenue? If you approve, give your reason. If you disapprove, identify a better way to decide when to ship goods. (There is no accounting rule against Dobb’s practice). In your second post comment on one of your classmates posts. For example: Do you think that your classmate should have included another factor? Why or why not? Maybe you agree with your classmate, but for another reason that he/she stated. If so, explain. ETHICAL ISSUE 5-1 – Dobbs Wholesale Antiques makes all sales under terms of FOB shipping point. The company usually ships inventory to customers approximately one week after receiving the order. For orders received late in December, Kathy Dobbs, the owner, decides when to ship the goods. If profits are already at an acceptable level, Dobbs delays shipment until January. If profits for the current year are lagging behind expectations, Dobbs ships the goods during December. CLASSMATE DISCUSSION: Under the FOB policy, the sale must be recorded when the merchandise leaves the shipping point. I disagree with Dobbs’ manners because under the FOB policy the buyer has the ownership of the property of the goods at the time of shipping and is the one paying the freight. Dobbs has to prepare for December, which is one of the busiest months for sales and should not delay the delivery of the goods at their convenience depending on the profitability of the company. Although there is not accounting rule against Dobb’s practice; it is not what a company that is respected and respects customers would do, it is not ethical. In the only way I would agree with Dobb’s decision is whether the volume of customers requesting the same is very high and is…