Question

Jason Herman works part-time as a retail clerk at a local bookstore. One night while his manager was out of town, Jason decided to keep the store open for a few extra hours. He reset the cash registers at the normal closing time, but continued making sales. Two hours later, when he closed for the night, he reset the registers again, removing all evidence that any extra transactions had been made, and pocketed the money from the after-hours sales. What kind of scheme did Jason commit? a. Register disbursementb. Force balancing c. Receivables skimming d. Unrecorded sales

Answer 1

Answer:

C - RECEIVABLES SKIMMING

Explanation:

Receivable skimming results when an employee in an organization steals money from that organization on items already sold which the organization is expecting or has already billed a customer for.

Jason Herman committed Receivable Skimming. The sales he made during the after-hours sales were not recorded in the register. He stole the money and pocketed it.

How to curb Receivable Skimming:

1. Comparing your actual inventory with your book inventory.

When inventory levels decline without a corresponding rise in sales, it is a red flag for unrecorded sales skimming.

2. Stop the cash coming into your office by adopting other methods of receiving payments from customers.

3. Accepting credit card payments is a wiser decision.

Answer 2

Answer: the correct option is D. Unrecorded sales.

Explanation: Unrecorded sales schemes are basically off-book transactions where the perpetrator understates sales by recording the sale of fewer items of merchandise than was actually sold.

Jason Herman has committed the scheme of unrecorded sales because he has removed all evidence of the transactions that took place after close of work. These transactions will not be recorded and the extra money made will go to Jason Herman.