3. Which company is mor persuaded the BTN 7-3 Anton Blair is manager of a medium-size company. A few years ago, Blair December he owner to base a part of his compensation on the net income the company earns each year. Each as high as financial figures anticipation of the bonus he will receive. If the bonus is not of his he would like, he offers several recommendation to the accountant for year-end adjustments. On favorite recommendations is for the controller reduce the estimate of doubtful accounts. Required the income statement and bal- 1. What effect does lowering the estimate for doubtful accounts have on ance sheet? allowance for doubtful accounts is within his 2. Do you believe Blair's recommendation to adjust the violation? Justify your response right as manager, or do you believe this action is an ethics overseeing the manager's recom 3. What type of internal control (s) might be useful for this company in mendations for accounting changes