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If you a controller and the company always aim sustainable net income, but the company for this year had extremely high income due to increase
If you a controller and the company always aim sustainable net income, but the company for this year had extremely high income due to increase of sales , so the president ask you to increase the yearly allowance for doubtful account from 4% to 6% of net credit sales because he is nervous the stockholders might expect the company to always be able to sustain such a high net income.
Q/ as controller what actions should you take and whay ?
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