Question
You are the accountant of Clean Ducts, a cleaning company that specializes in cleaning commercial duck work in Rochester MN. As the accountant, you have
You are the accountant of Clean Ducts, a cleaning company that specializes in cleaning commercial duck work in Rochester MN. As the accountant, you have been invoicing and entering accounts receivable into QuickBooks accounting software. Mail is opened by you, where you enter the cash receipts into QBs and prepare the deposit to the bank. About a month ago, Alberto who is one of the minority owners and sales manager asked you to enter a new company, Dirty Ducts Inc, into QBs as a new customer and start a monthly cleaning service contract for their commercial properties. Today, Alberto told you the Dirty Ducts company is not going to pay their monthly amount. Instead, they are going to provide Alberto with "free tickets" to all of the sports and concerts at their suite located in Minneapolis US Bank stadium.
Alberto has asked you to write off each month their accounts receivable invoice and use the account "office supplies" to hide the write-off cost. Alberto also said that this is approved by the other owners. And let him know what concert or sports event you want to go to and two tickets will be provided to you for your help. You did ask the other owner about this strange request - and the other owner was aware of the agreement and did not show any concerns (as he took off the day to go to a concert). You mentioned to both owners that this impacts the net income and profit sharing calculations used by all employees. And thought that it was unfair that these personal entertainment expenses were lowering the profit-sharing amount of the company. Alberto told you to keep this confidential from other employees. He further stated that this is not impacting the net income because "We would not have this client if we did not agree to the form of payment. Being paid in tickets is the same as being paid in cash".
Using 3-4 sentences for each of the a-c questions, answer the following:
a) Describe the ethical dilemma that you are faced with.
b) Who is impacted by your decision(s)?
c) What would you do in this ethical dilemma?
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