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You are the accountant for London Imports and Exports. The company imports and exports food and candy items throughout the world. The company is finalizing

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You are the accountant for London Imports and Exports. The company imports and exports food and candy items throughout the world. The company is finalizing its 3rd quarter financial results. All adjustments have been made for the 3rd quarter except the adjustment for Bad Debts Expense. The preliminary 3rd quarter results along with the 1st and 2nd quarter results are shown below. The CFO asked you to look at the Allowance for Doubtful Accounts and use the Aged Accounts Receivable to calculate the adjustment needed for bad debts expense for the 3rd quarter. The CFO stated that he knows the customers are slower at paying this quarter but he wants the Allowance for Doubtful Accounts to not be increased; in fact he's encouraging you to decrease it so it has an adjusted balance of $8,000. He wants you to play around with the estimated bad debt loss rates to get the number he wants for the adjusted balance of the Allowance account. You are confused, so you decide to analyze the Allowance for Doubtful Accounts, and you came up with the following summary of the T account below: nber he wants for the adjusted balance of the wance account. You are confused, so you decide to lyze the Allowance for Doubtful Accounts, and you e up with the following summary of the T account AGING OF ACCOUNTS RECEIVABLE SCHEDULE: TotalAccountsReceivable$10,000$35,000$78,000$123,000 1. What is the problem with the Controller asking you to "play around with the estimated bad debt loss until you get it to work"? 2. If you were to record the bad debts expense based on what you learned in accounting, what amount would you record and how did you calculate this? 3. If you were to record the bad debts expense based on what the controller wants, what amount would you record and how did you calculate this? 4. Is there any evidence of unethical behavior in this case? Thoroughly explain your answer. Be sure to mention how net income would be affected based on your answers to \#2 and \#3 and how this would affect stakeholders. State what you believe is the ethical course of action

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