Assume that you are preparing Galore Ltd's yearly allowance for doubtful debts based on 2% of net credit sales, which will potentially result in 10% growth rate. The managing director, Ms Sharon Shady (Sharon), suggested you to increase the allowance for doubtful debts to 4% in order to achieve a 5% growth rate. Sharon said to you that: "we do not want our shareholders to expect our company to sustain a 10% growth every year rather, a 5% growth rate is more sustainable for our company."

1.How does your decision about whether to follow Sharon's suggestion influence various stakeholders? You are required to provide detailed explanations.

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