Deb Rush, a new accountant, was asked to record about $50,000 in inventory as having been received before month end. She argued that the shipping documents clearly showed that the goods were actually received on the 8th of the current month. Her boss, busy with month-end reports, curtly tells Deb to check the shipping forms. She did so, and found the notation "FOB shipper's dock" on the documnt. She hadn't seen that particular notation before, but she reasoned that if the selliing company cosidered it shipped when it reached their dock, Feeney should consider it received when it reached Feeney's dock. She did not record the sale until the month end.
Why are accountants concerned with the timing in the recording of purchases? Was there a violation of ethical standards here? Explain.