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Custom Financial Accounting essay paper sample

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The role of an accountant in managing business transaction is varied and significant. In order to succeed in making accurate transactions, accountant must have a concrete grip of accounting procedures such as those involved in shipment of goods. The case study of Dobbs Wholesale Antiques provides some critical information that is useful in making of recording of sales. As indicated in the sale terms under the FOB shipping point, the company has to record all sales when the goods leave the company’s dock. According to Needles and Powers (2010), the FOB shipping point allows firms to sell goods to their customer and record revenues once the good leave the port. In addition to this, the company transfer the shipping cost to the consumer who will have to handle all the freight charges levied on the goods.

As presented in the case study, it is apparent that Dobb’s decides when to ship goods depending on some factors such as profit earned, and thus a display of unethical conduct. Given that the Dobb’s wholesale antiques receive orders a week before shipping the goods, it is unethical to hasten the process for the sake of making revenues at a short time than expected. Certainty, I disapprove Dobb’s decision to ship all goods to customers at an earlier date. The decision to ship such goods is often motivated by financial factors that can have an impact on the relationship between the firm and its customers if practiced. When customers place orders for goods, they expect them to be shipped in a week’s time and perhaps be recorded as inventory in January. However, Dobb’s actions put the company’s reputation at risk and thus unacceptable.

Dobb has not broken any accounting rule, but his firm has an opportunity of shipping goods in a better way. Since the company created a tradition of shipping goods a week after customers place orders, this schedule can be applied by the firm all orders that customers place for delivery. This way, the company will be consistent in its transactions.

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