Gerry Smith is the senior accountant for SS Salm Inc. His boss Harry Stiles, the controller, is working on renewing the company's credit line. Based on the company's current projected profit level, they are having trouble getting approval.

Harry is asking Gerry to reconsider the warranty estimate and reducing the rate used to estimate this from 6% to 3%. Harry is suggesting that a lower warranty expense will improve the potential of being approved for the higher credit line. He also stated that since it's an estimate anyway, there's no way to say one rate is better than the other.

How would you respond?