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    Just For Feet Case Study

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    SK
    Just for Feet improperly recognized revenue from vendors by recording unearned receivables and fictitious income from display booths and advertising allowances without proper contracts. NextCard was a credit card company that spent excessively to acquire unprofitable customers during the dot-com bubble, hid losses by not properly accounting for bad debt allowances, and later manipulated documents during an audit to validate invalid conclusions.

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    Just For Feet Case Study

    Uploaded by

    SK
    341 views1 page
    Just for Feet improperly recognized revenue from vendors by recording unearned receivables and fictitious income from display booths and advertising allowances without proper contracts. NextCard was a credit card company that spent excessively to acquire unprofitable customers during the dot-com bubble, hid losses by not properly accounting for bad debt allowances, and later manipulated documents during an audit to validate invalid conclusions.

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    ADM 4341 Case Study

    Original Title

    Just for Feet Case study

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    Just for Feet improperly recognized revenue from vendors by recording unearned receivables and fictitious income from display booths and advertising allowances without proper contracts. NextCard was a credit card company that spent excessively to acquire unprofitable customers during the dot-com bubble, hid losses by not properly accounting for bad debt allowances, and later manipulated documents during an audit to validate invalid conclusions.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    341 views1 page

    Just For Feet Case Study

    Uploaded by

    SK
    Just for Feet improperly recognized revenue from vendors by recording unearned receivables and fictitious income from display booths and advertising allowances without proper contracts. NextCard was a credit card company that spent excessively to acquire unprofitable customers during the dot-com bubble, hid losses by not properly accounting for bad debt allowances, and later manipulated documents during an audit to validate invalid conclusions.

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    © All Rights Reserved
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    Just for Feet

    Logo 7, later called logo athletic, sold the logo to Reebok


    Shine signed audit confirmation indicating he owed 700k to customer

    Just for feet:


    -

    Improperly recognized unearned and fictitious receivables from


    vendors
    Failed to properly account for excess inventory
    Improperly recording as income the value of display booths provided
    by vendors
    Advertising allowance from vendors No contract
    o JFF recorded anticipated allowances as receivables and offset
    expenses
    Recorded booth income as JFFs income
    JFF had leverage over vendors cause of big orders, only Thomas Shine
    (Logo) signed it

    NextCard
    -

    Credit card company


    Undercu t average customer acquisition costs
    Were not profitable, after the dotcom bubble burst, no way to get
    money from debt and equity markets.
    Spent lots of money getting bad customers instead of minial amount to
    get good customers
    Hid the losses by refusing to provide sufficient allowances each period
    for expected bad debts
    Once nextcard was being scrutinized The auditing team manipulated
    old documents to make it seem like their conclusion was valid

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