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X company always aim a steady net income, but the company this year had high sales resulted in extremely high net income, so the president
X company always aim a steady net income, but the company this year had high sales resulted in extremely high net income, so the president told the controller 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/ what actions the controller should take and why ?
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