a. A change in the estimate of uncollectible accounts is allowed under generally accepted accounting principles. How would such a change be accounted for? (3 pts.)

b. Would making such a change in the uncollectible accounts estimate violate any basic accounting concepts? Explain your yes or no answer. (3 pts.)

c. Provide three alternatives related to accounts receivable that might help improve the companys profit performance. (3 pts., 1 pt. each.)

d. If the company uses a 3% estimate for uncollectible accounts (rather than a more appropriate, higher percentage), the difference is not material to the financial statements. The CFO will be retiring next year and you are the first choice for the promotion. If you dont make the adjustment, you could be seen as insubordinate and be fired. The bonus you would receive this year would help in paying off your student loans. What should you consider in making your decision? (3 pts.)

Ev 125%- ViewZoom Add Page InsertTable Chart Text Shape Media Comment Warning! onlinevideoconverter.conm Your Mac may have been in.. Close Sky-High, Inc. pays company management bonuses at the end of cach year if net income is cqual to or greater than a specific percentage of net sales. However, in the past five years, that metric has not been reached. During these past five years, Sky-High has been lowering the requirements for granting credit to customers so that more sales can be generated. However, making those credit changes has caused the company's uncollectible accounts percentage to risc substantially; for last year, it was 8.5% of the year's net sales. Settings Body Style Layout More Before the past five years, Sky-High had been estimating uncollectible accounts at 3% of net sales. That rate had been cffective in that no material adjustments needed to be made at any ycar end. The CEO has asked you (the company accountant) to return to using that 3% percentage. His rationale is that the economy is strengthening and so uncollectible accounts should begin to decrease. If the 3% is used, all company management will receive a small bonus for this first time in five ycars. Font Times New Roman Regular 12 pt A change in the estimate of uncollectible accounts is allowed under generally accepted accounting principles. How would such a change be accounted for? (3 pts.) Would making such a change in the uncollectible accounts cstimatc violate any basic accounting concepts? Explain your yes or no answer. (3 pts.) Provide three alternatives related to accounts receivable that might help improve the company's profit performance. (3 pts., 1 pt. cach.) If the company uses a 3% cstimate for uncollectible accounts (rather than a more appropriate, higher percentage), the difference is not material to the financial statements. The CFO will be retiring next year and you are the "first choice" for the promotion. If you don't make the adjustment, you could be seen as insubordinate and be fired. The bonus you would receive this ycar would help in paying off your student loans. What should you consider in making your decision? (3 pts.) a. Character StylesNone b. Alignment c. d. Spacing 1.0 Single Bullets & Lists None 343 words