Description of Chosen Merchant I have selected Bevmo (Beverages and More) as a merchant that operates locally to where I live in Northern California. According to their website, Bevmo are “the leading alcoholic beverage-lifestyle speciality retailer in the western United States”. Their prices are competitive, and because they regularly offer hard-to-turn-down sales, such as their famous $0.05 sale (buy one bottle of wine, get the second for only 5 cents), I have become a regular customer. They also sell speciality foods, snacks, cigars, glassware, bar and wine accessories, as well as many non-alcoholic beverages and mixers. Bevmo’s Retail Controls In order to keep track of their assets - in Bevmo’s case, a large investment in their inventory of valuable beverages – retailers must implement many control procedures. For example, limiting access to a supplies stock area to only authorized managers, and other responsible supervisors. They have to give special attention to theft of inventory, not just by customers, but also internally by members of staff. For example, Bevmo stocks Remy Martin Cognac Louis VIII, which retails at $3,199.99. Such items and other …show more content…
An example of improving such a control is requiring a sales manager to approve any customer returns for store credit. As well as safeguarding their assets, and keeping accounting information reliable and accurate, Bevmo should regularly evaluate operating performance and efficiency. Missing items can be identified if documents are pre-numbered. Another accounting control is checking that cash from a point of sale terminal matches that of sales recorded on the same register. They must pay careful attention to the costs and benefits of their internal control system, and have a CPA independently check the company’s accounting records periodically, in case they find ways of