Sharpe Medical Supply, Inc. has suffered a recent slow­down in sales and is in danger of showing a loss for the 20X1 fiscal year. To boost income, the sales manager encourages two of the company’s largest customers to overbuy several slow­moving products at deep discounts. He also offers them extended payment terms, some of which delay payment until the end of 20X2. This is an example of what type of scheme?

Sharpe Medical Supply, Inc. has suffered a recent slow­down in
sales and is in danger of showing a loss for the 20X1 fiscal year. To boost
income, the sales manager encourages two of the company’s largest
customers to overbuy several slow­moving products at deep discounts. He
also offers them extended payment terms, some of which delay payment until
the end of 20X2. This is an example of what type of scheme?

Discount extension
Long­term contracts
All of the above

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