5351 Shares

Rare Earth Clothing is a retail store specializing in women’s clothing. Th e store has established?

Rare Earth Clothing is a retail store specializing in women’s clothing. Th e store has established? Topic: How to complete your holiday homework
July 19, 2019 / By Cody
Question: Rare Earth Clothing is a retail store specializing in women’s clothing. Th e store has established a liberal return policy for the holiday season in order to encourage gift purchases. Any item purchased during November and December may be returned through January 31, with a receipt, for cash or exchange. If the customer does not have a receipt, cash will still be refunded for any item under $100. If the item is more than $100, a check is mailed to the customer. Whenever an item is returned, a store clerk completes a return slip, which the customer signs. Th e return slip is placed in a special box. Th e store manager visits the return counter approximately once every two hours to authorize the return slips. Clerks are instructed to place the returned merchandise on the proper rack on the selling fl oor as soon as possible. Th is year, returns at Rare Earth Clothing have reached an all-time high. Th ere are a large number of returns under $100 without receipts. a. How can sales clerks employed at Rare Earth Clothing use the store’s return policy to steal money from the cash register? b. What internal control weaknesses do you see in the return policy that make cash theft s easier? c. Would issuing a store credit in place of a cash refund for all merchandise returned without a receipt reduce the possibility of theft ? List some advantages and disadvantages of issuing a store credit in place of a cash refund. d. Assume that Rare Earth Clothing is committed to the current policy of issuing cash refunds without a receipt. What changes could be made in the store’s procedures regarding customer refunds in order to improve internal control?
Best Answer

Best Answers: Rare Earth Clothing is a retail store specializing in women’s clothing. Th e store has established?

Belphoebe Belphoebe | 8 days ago
Sorry, this is Yahoo Small Business Answers, not Yahoo Please Do My Homework For Me. There is a section specifically for homework.
👍 264 | 👎 8
Did you like the answer? Rare Earth Clothing is a retail store specializing in women’s clothing. Th e store has established? Share with your friends

We found more questions related to the topic: How to complete your holiday homework


Belphoebe Originally Answered: How hard is it to own a clothing store?
Hi, presently retailing is very hard and most likely will get harder. Both the economic crisis and online shopping are much damaging it. However, to survive one needs to adapt. And some shops are doing just that. One way is to have a themed shop (say just "Gothic-style" clothes), rather than sell a wide range of bland lines (like most shops do). Another is to use the physical shop mostly as a showroom, where the full catalogue is available online (virtual). Another method is to be a focal point for your local community, say having a creche for busy mums. And another is being mostly manufacturing/adapting/customising/repai... shop for online items. The last business model is probably an option for your clothes boutique. You already have a passion for fashion design and a vision of your business. These are the right starting positions. As you know already, you need much 'startup capital' (to buy your premises, equipment, etc). I guess retail space will be, however, significantly cheaper as the leasers will be desperate for paid occupiers. This is obviously to your advantage. A recent trend is "pop-up shops". These are when you would only rent a shop on a short-term temporary basis. Even just a week! This enables you to test the market before commiting all your money to it. I strongly advise start this way. Meantime spend your spare time learning about the fashion industry. It's textiles, tailoring, designing, presenting, etc. See what trends are happening and try designing along those lines. And build up a Portfolio of your own designs. And study Fashion Design at college/university. Or if you cannot wait for, or afford to, employ a qualified designer to work in your shop. In this case ensure you get some business management training. Keep that vision in your mind and strive for your dream. Good luck....

Belphoebe Originally Answered: Would $25,000 be enough money to open a small clothing store?
Well, in that type of business the first that comes to mind are: You need to have a good supply of clothing. Is it for resale or new? If new you have to think of how much you plan to spend on what you order. If resale, can take donations and work on commission to the one who donates/sells that way and you can find clothing in your closets,etc. I would say there is always a building overhead cost to figure monthly with the rental of a shop or space in a multi place business section. Then there are utility costs (like water, gas, electric and phone if not giving out the way to reach otherwise by cell phone .Then there is the cell phone charge use to say you have for such purposes as well only). I would think that this is somewhat deductible in business expenses when filing your taxes from the business. I would also look into whether you need to have employees otherwise to sell the merchandise. That is a payroll expense if you hire other ppl to help out. I would think of the advertising or any sales promotion fees as well. Those are what I can think of offhand but I'd search starting up a clothing business (the expenses of doing so) online to be sure of it all.
Belphoebe Originally Answered: Would $25,000 be enough money to open a small clothing store?
Save the money, now is not a good time to open a store, trust me, the country is in a recession,you could loose all of that money Fast! It is not nearly enough money anyways, you need insurance, payroll , items that you will be selling, a building, Permits....and that is just a start. Good luck anyways.

If you have your own answer to the question how to complete your holiday homework, then you can write your own version, using the form below for an extended answer.