1) From the standpoint of an individual concerned with accounting

controls, discuss and evaluate Johnson Toy Companys present

policies for handling returned items.
In the absence of policies clearly established with the return of items not
sold it presents a problem for the accounting department because they
dont have a real control in sales because if one of the retailers fail to sell
the products they have full freedom to return them, so the company never
has an idea how many products they sell.
2) Answer question 1, but from the standpoint of an individual interested
in marketing.
The promotion of the product may be affected because the retailers have no
commitment to the company and have no immediate need to sell the
products because they can return them and dont suffer losses, so the
product ceases to be a consideration as premium and becomes in any
element in the stock of retailers
3) Propose a policy for handling returns that should be adopted by the
Johnson Toy Company. Be certain to list circumstances under which
exception would be allowed. Should it apply to the Jungle Jim dolls?.
Items will only be returned if they suffer any problem during transportation
and evidence that the packaging has not been opened. Another reason for a
refund is that the items have a manufacturing defect. It should be noted
that the company should have some type of insurance if products suffer
damage when they are translated.
4) Should this policy, if adopted, be printed and distribute to all of the
retailers and that it should be less than a single double-spaced page.
Prepare such a statement.
These policies should be distributed to all retailers, but must be specified to
apply from a certain date to avoid problems with deliveries and orders that
are currently in progress. The corresponding formalities must be fulfilled and
delivered to the high command of the retailers and in turn another copy to
the people who work in distribution area.
5) Assume that it is decided to prepare a statement on returns to be
distributed to all retailers and that it should be less than a single
double-spaced page. Prepare such a statement.
Return Policy products by retailers
After the purchase of these items they cannot be returned because sales
failed for the retailers. Only return of the products is made if they present a
manufacturing defect as:

Wrong assembly of the components of the product.

Wrong colors of the toys.
-

Damaged packaging
-

Products broken by damages when they were transported.

It notes that these issues should be reported up to 48 hours after delivery

orders otherwise no returns will be accepted.
6) On the basis of the policy in your answer to question 3, develop
instructions for the Johnson Toy Company distribution and accounting
departments with respect to their roles and procedures in the
handling of returns.
Distribution department should coordinate the reception of products. The
accounting department should lead the accounting and reporting the
reasons for returns, in turn to tell to distribution which is the most common
cause of returns in order to avoid similar situations in a future.
7) Assume that you are Cheryl Guridi, the firms logistics manager. Do
you think that the returns policy favored by the logistics manager
would differ from what would be best for the firm? Why or why not.
Logistics would be appropriate because the solution involves searching for
other areas in order to achieve a solution that favors the overall
conglomerate company
8 Until the policy you recommend in your answer to question 3 takes effect,
how would you handle the immediate problem of retailer wanting to return
unsold Jungle Jim the Jogger dolls?
About this conflict we cannot change the policies of delivery and
unfortunately have to take losses due to bad policies with the issue of
returns. The idea of recycling parts of toys to create other is a good idea to
reduce losses. Also we can do a deal with the companies in order to sell the
toys to others retailers.