to think that the retailer has lost both the stolen cash and merchandise, but the accounting doesn’t work that way. Why? Since the stolen hundred-dollar bill is returned back to the cash register when the sale takes place. The retailer literally recovers its money.
Let us try to understand that in more detail:
Step 1: The Theft
The thief steals $100.
Damage: The loss on the part of the shop is $100. Simple enough.
Step 2: The Transaction
The thief comes back into the store and makes a purchase worth $70 using the exact same stolen money. The clerk unknowingly accepts it.
Once the deal is done, that $100 bill is back in the drawer, meaning the original cash is no longer missing. However, the store just handed the thief:
$70 worth of items
And $30 worth of cash.
Thus, the thief got $70 worth of goods and $30 in
