Business, 24.10.2019 18:43, memester74

You have recently been hired as the assistant controller for stanton industries, a large, publicly held manufacturing company. your immediate superior is the controller who, in turn, is responsible to the vice president of finance. the controller has assigned you the task of preparing the year-end adjusting entries. in the receivables area, you have prepared an aging of accounts receivable and have applied historical percentages to the balances of each of the age categories. the analysis indicates that an appropriate balance for the allowance for uncollectible accounts is $180,000. the existing balance in the allowance account prior to any adjusting entry is a $20,000 credit balance. after showing your analysis to the controller, he tells you to change the aging category of a large account from over 120 days to current status and to prepare a new invoice to the customer with a revised date that agrees with the new aging category. this will change the required allowance for uncollectible accounts from $180,000 to $135,000. tactfully, you ask the controller for an explanation for the change and he tells you %u201cwe need the extra income, the bottom line is too low.%u201d 1. what is the effect on income before taxes of the change requested by the controller? 2. discuss the ethical dilemma you face. consider your options and responsibilities along with the possible consequences of any action you might take.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 03:30, jadahilbun01

Instructions: use the following information to construct the 2000 balance sheet and income statement for carolina business machines. round all numbers to the nearest whole dollar. all numbers are in thousands of dollars. be sure to read the whole problem before you jump in and get started. at the end of 1999 the firm had $43,000 in gross fixed assets. in 2000 they purchased an additional $14,000 of fixed asset equipment. accumulated depreciation at the end of 1999 was $21,000. the depreciation expense in 2000 is $4,620. at the end of 2000 the firm had $3,000 in cash and $3,000 in accounts payable. in 2000 the firm extended a total of $9,000 in credit to a number of their customers in the form of accounts receivable. the firm generated $60,000 in sales revenue in 2000. their cost of goods sold was 60 percent of sales. they also incurred salaries and wages expense of $10,000. to date the firm has $1,000 in accrued salaries and wages. they borrowed $10,000 from their local bank to finance the $15,000 in inventory they now have on hand. the firm also has $7,120 invested in marketable securities. the firm currently has $20,000 in long-term debt outstanding and paid $2,000 in interest on their outstanding debt. over the firm's life, shareholders have put up $30,000. eighty percent of the shareholder's funds are in the form of retained earnings. the par value per share of carolina business machines stock is

Answers: 3

continue

Business, 22.06.2019 11:20, greatsavagebeast

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Answers: 3

continue

Business, 22.06.2019 11:30, Coltong121

Buyer henry is going to accept seller shannon's $282,500 counteroffer. when will this counteroffer become a contract. a. counteroffers cannot become contracts b. when henry gives shannon notice of the acceptance c. when henry signs the counteroffer d. when shannon first made the counteroffer

Answers: 3

continue

Business, 22.06.2019 11:30, emocow

1. regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool. student c incorrect

Answers: 2

continue

Do you know the correct answer?

You have recently been hired as the assistant controller for stanton industries, a large, publicly h...