Accounting Question

Kelly Steinman is the manager of a medium-size company. A few years ago, Steinman persuaded the owner to base a part of her compensation on the net income the company earns each year. Each December she estimates year-end financial figures in anticipation of the bonus she will receive. If the bonus is not as high as she would like, she offers several recommendations to the accountant for year-end adjustments. One of her favorite recommendations is for the controller to reduce the estimate of doubtful accounts. Required What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet? Do you believe Steinman’s recommendation to adjust the allowance for doubtful accounts is within her right as manager, or do you believe this action is an ethics violation? Justify your response. What type of internal control(s) might be useful for this company in overseeing the manager’s recommendations for accounting changes? Respond to the scenario in the space provided below. Create a post (250 words minimum) relating the researched information to the material presented in the chapters covered. As a reminder of the grading criteria, I have included the grading rubrics found under EXPECTATIONS in the course general information. You must have at least one non-textbook reference. Be sure to use APA format for all references. Refer to the following section for expected criteria and grading rubrics.