Philip Stanton, the executive manager of Thomson Pharmaceutical, receives a bonus if th company's net income in the current year exceeds net income in the past year. By the end of 2018, it appears that net income for 2018 will easily exceed net income for 2017. Philip has asked Mary Beth Williams, the company's controller, to try to reduce this year's income and "bank" some of profits for future years. Mary Betg suggests that the company's bad debt expense as percentage of accounts receivable for 2018 Be increase from 10% to 15%. She believes 10% is more accurate estimate but knows that both the corporation's internal and external auditors allow some flexibility in estimate. What is the effect of increasing the estimate of bad debts from 10% to 15% of account receivable? How does this "bank" income for future years? Why does Mary Beth's proposal present an ethical dilemma?