The first was to ship to an offsite warehouse owned by Excello by December 31, 2010 and ship it again on the requested January 11, 2011 date. The second was to transfer the product to the buyer by December 31 and offer a full refund if retuned to Excello. The third option was to offer the buyer a ten percent discount to take the product by December 31, 2010. Of the three options the best alternative seems to be offering a discount if the customer takes the product by December 31, 2010. Giving discounts to a buyer is not an uncommon practice and is not an illegal practice that is defined by the GAAP or the SEC. If the product is delivered to the buyer by the December 31, 2010 deadline the sale will be legitimate and the $1.2 million dollars can be appropriately recorded in 2010. Transferring the product to the buyer before January in order to make the earnings estimate and procure the bonuses and stock options is not the most ethical reason but does not appear to be
The first was to ship to an offsite warehouse owned by Excello by December 31, 2010 and ship it again on the requested January 11, 2011 date. The second was to transfer the product to the buyer by December 31 and offer a full refund if retuned to Excello. The third option was to offer the buyer a ten percent discount to take the product by December 31, 2010. Of the three options the best alternative seems to be offering a discount if the customer takes the product by December 31, 2010. Giving discounts to a buyer is not an uncommon practice and is not an illegal practice that is defined by the GAAP or the SEC. If the product is delivered to the buyer by the December 31, 2010 deadline the sale will be legitimate and the $1.2 million dollars can be appropriately recorded in 2010. Transferring the product to the buyer before January in order to make the earnings estimate and procure the bonuses and stock options is not the most ethical reason but does not appear to be