Need accounting help to return a product

1)   A customer asks to return a product (a thermostat that retails for $400 and costs ALPINE $250) beyond the 30 day return policy.  It is only five days later. They tell you that they just got around to installing their products this past weekend and can’t use the thermostat because it won’t work with their application.  The customer spent $5,000 with ALPINE but does not plan to place any future orders with ALPINE. 

Question 6A)  What immediate loss will Alpine take by accepting this return after receiving the product back into inventory?  

Question 6B)  What alternatives could ALPINE offer to this customer if the return was not authorized? 

Question 6C)  What would you tell this customer?  What do you think is the best way to handle this request? 

 

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