If you a controller and the company always aim sustainable net income, but the company for this year had extremely high income due to increase of sales , so the president ask you 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/ as controller what actions should you take and whay ?
If you a controller and the company always aim sustainable net income, but the company for this year had extremely high income due to increase of sales , so the president ask you 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/ as controller what actions should you take and whay ?
Chapter16: Statement Of Cash Flows
Section: Chapter Questions
Problem 3TP: Consider the dilemma you might someday face if you are the chief financial officer of a company that...
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![you a controller and the company always aim
sustainable net income, but the company for this
year had extremely high income due to increase
of sales , so the president ask you 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/ as controller what actions should you take and
whay ?
If](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6dd9e488-4e3b-4a06-a5c8-b791faee44ba%2Fcd5e00f1-4d78-4c43-966f-373c2aba59ee%2Fv2o291b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:you a controller and the company always aim
sustainable net income, but the company for this
year had extremely high income due to increase
of sales , so the president ask you 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/ as controller what actions should you take and
whay ?
If
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