Accounting Discussion homework

/in /by

ALL WORK MUST BE ORIGINAL AND NO PLAGIARISM

ETHICS CASE

As its year-end approaches, it appears that Mendez Corporation’s net income will increase 10% this year. The president of Mendez Corporation, nervous that the stockholders might expect the company to sustain this 10% growth rate in net income in future years, suggests that the controller increase the allowance for doubtful accounts to 4% of receivables in order to lower this year’s net income, which reflects a 6% growth rate, will be a more sustainable rate of growth for Mendez Corporation in future years. The controller of Mendez Corporation believes that the company’s yearly allowance for doubtful accounts should be 2% of receivables.

QUESTIONS:

  • Who are the stakeholders in this case?
  • Does the president’s request pose an ethical dilemma for the controller?
  • Should the controller be concerned with Mendez Corporation’s growth rate in estimating the allowance? Explain your answer in full detail.
 
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.