Finance accounting solution Coursework Example | Topics and Well Written Essays - 250 words

Finance accounting solution - Coursework Example The student’s actions have consequences. If the store owner discovers the student’s mischievous actions, he can take legal action against her. Additionally, the business relationship of the two will be ruined, and the student may not be allowed to purchase from the store anymore. There are consequences to the store such as suffering losses because of the fraudulent returns by the student. Return fraud costs retail shops billions every year. Due to this, retailers are trying to come up with policies that curb the behavior, but still protect legitimate customers (Paul, 2012). There are ways through which retailers account for returned merchandise. First, the goods are examined, and their value is determined. If the goods are in good condition, they are restocked and sold again at new prices. However, if the merchandise is not in good condition and cannot be sold again, the retailer bears the loss of both the profit and the cost of acquiring the