Question
Kelly steam hauser is the manager of a medium size company.A few years Steinman persuadedo the owner to be a part of her compensation on
Kelly steam hauser is the manager of a medium size company.A few years Steinman persuadedo the owner to be a part of her compensation on the net income the company earns each year. Each December she estimates year end financial figures in anticipation of the bonus she will receive. If the bonus is not as high as she would like she offers several recommendation to the accountant for year end adjustments. One of her favorite recommendation is for the controller to reduce the estimate of doubtfully accounts
1. What effects dose lowering the estimate for doubtful accounts have on the income statement and balance sheet
2.Do you believe Steinman recommendation to adjust the allowance for doubtfully accounts is within her right as manager, or do you believe this action is anot ethics violation justify your response
3. What type of internal controls might be useful links for this company in overseeing the managers recommendation for accounting changes.
Could some one answer these questions
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