Precision Corporation's net income appears to be increasing by 12% this year. The President of the company, is nervous that stockholders might expect the company to sustain this growth rate in the future, once the pandemic impact decreases. So he talks to the Controller and suggests and increase on the allowance for doubtful accounts to 6% of receivables in order to lower this year's net income. The lower net income will reflect a more sustainable growth rate in future years. The controller believes that the company's yearly allowance for doubtful accounts should be 4% of receivables.

• Who are the stakeholders in this case? (20 points)
• Does the president's request pose an ethical dilemma for the controller or not? Explain your answer (20 points)
• Should the controller be concerned or take the company's growth rate into consideration when estimating the allowance? Why or why not? Explain your answer (20 points)
• What factors need to be taken into consideration (including or excluding growth rate) in estimating the allowance? (20 points)
• Reply to the content of another student's answers (20 points)