Fast tract Loan Co. makes loans to high-risk borrowers. Fast tract borrows from its bank and then lends money to people who have bad credit. The bank requires Fast tract Loan to submit quarterly financial statements in order to keep its line of credit. Fast tract's main asset is Accounts Receivable. Therefore, Bad Debts Expense and Allowance for Bad Debts are important accounts. Jan McMurphy, the controller of Fast tract Loan, wants net income to increase in a smooth pattern rather than increase in some periods and decrease in others. To report smoothly increasing net income, McMurphy underestimates Bad Debts Expense in some periods. In other periods, McMurphy overestimates the expense. He reasons that over time, the income overstatements roughly offset the income understatements. Is McMurphy's practice of smoothing income ethical? Why or why not?