Description: When it comes to wearing a favourite clothing brand, the phrase ‘Immediately stop’ gets your attention, doesn’t it? Health Canada has told Canadians to immediately stop wearing certain big brand name Helly Hansen hoodies and sweaters due to concerns over non-compliance with regulations regarding flammability. Roughly 130,000 garments have been subjected to this product recall. The good news is that there have been no reports to date of Canadians having any incidents related to this flammability issue.
Date: February 1, 2023
1) Do a quick survey of the items included in the recall using the link in the article. Is anyone in your accounting class an owner of the listed Helly Hansen apparel?
2) What might be some of the logistical decisions involved in organizing a product recall like this?
3) Chapter 5 of Wiley’s Financial Accounting: Tools for Business Decision-Making deals with recording sales revenue and the related returns by customers. What are the two ways of accounting for sales returns described in the chapter?