Amy Martin is a student who plans to attend approximately four professional events a year at her college. In her view, each event necessitates a financial outlay of $100 to $200 for a new suit and accessories. After incurring a major hit to her savings for the first event, Amy developed a different approach. She buys the suit on credit the week before the event, wears it to the event, and returns it the next week to the store for a full refund on her charge card.

Required:

1. Comment on the ethics exhibited by Amy and possible consequences of her actions.

2. How does the merchandising company account for the suits that Amy returns?