For this discussion,you will be using theEthical Dilemma. A copy of the dilemma is also posted below for convenience. For theInitial Post,you will be arguingin favor ofTony Smith's proposal to include the January sales on Precision's report for the current year. Remember to use logic and the accounting principles you have learned thus far to develop your argument. You must include at least three points as to why this route is the best route to go (with one of those points being related to the learned accounting principles).

Response Post:When it is time to complete the Response Post, you will need to read through your classmate's initial thoughts. FindONEInitial Post to respond to. For theResponse Post,you will be arguingagainstTony Smith's proposal to include the January sales on this year's reporting. Remember that for the Response Post, you must not only argue your case as to why the route you suggest is best, but you must also produce counter arguments to the point(s) made in the Initial Post.

  

 

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The Precision Parts Corporation manufactures automobile parts. The company has reported a profit every year since the company's inception in 1980. Management prides itself on this accomplishment and believes one important contributing factor is the company's incentive plan that rewards top management a bonus equal to a percentage of operating income if the operating income goal for the year is achieved. However, 2024 has been a tough year, and prospects for attaining the income goal for the year are bleak. Tony Smith, the company's chief financial officer, has determined a way to increase December sales by an amount sufficient to boost operating income over the goal for the year and secure bonuses for all top management. A reputable customer ordered $120,000 of normally stocked parts to be shipped on January 5, 2025. Tony told the rest of top management, "I know we can get that order ready by December 31. We can then just leave the order on the loading dock until shipment. I see nothing wrong with recognizing the sale in 2024 since the parts will have been manufactured, and we do have a firm order from a reputable customer." The company's normal procedure is to ship goods f.o.b. destination and to recognize sales revenue when the customer receives the parts. The Precision Parts Corporation manufactures automobile parts. The company has reported a profit every year since the company's inception in 1980. Management prides itself on this accomplishment and believes one important contributing factor is the company's incentive plan that rewards top management a bonus equal to a percentage of operating income if the operating income goal for the year is achieved. However, 2024 has been a tough year, and prospects for attaining the income goal for the year are bleak. Tony Smith, the company's chief financial officer, has determined a way to increase December sales by an amount sufficient to boost operating income over the goal for the year and secure bonuses for all top management. A reputable customer ordered $120,000 of normally stocked parts to be shipped on January 5, 2025. Tony told the rest of top management, "I know we can get that order ready by December 31. We can then just leave the order on the loading dock until shipment. I see nothing wrong with recognizing the sale in 2024 since the parts will have been manufactured, and we do have a firm order from a reputable customer." The company's normal procedure is to ship goods f.o.b. destination and to recognize sales revenue when the customer receives the parts.