Question: You have recently been hired as the assistant controller for Clayton, Inc., a large, publicly held manufacturing company. Your immediate superior is the controller who,

You have recently been hired as the assistant controller for Clayton, Inc., a large, publicly held manufacturing company. Your immediate superior is the controller who, in turn, is responsible to the chief financial officer. The controller has assigned the task of preparing the year-end adjusting entry for bad debts to you. The allowance for uncollectibles accounts has a credit balance of $86,000 before the year-end adjustment. Your analysis indicates that an appropriate balance for the allowance account is $210,000. After showing your analysis to the controller, she tells you to adjust the allowance account to $310,000. Tactfully, you ask the controller for an explanation for the amount and she tells you, "We are having a really good year. Let's bump up the allowance." Required: Discuss the ethical dilemma you face. Consider your options and responsibilities along with the possible consequences of any action you might take.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Hello, I need some help with this financial accounting homework. Thank you. 1. You have recently been hired as the assistant controller for Clayton, Inc., a large, publicly held manufacturing...

You have recently been hired as the assistant controller for Clayton Inc., a large, publicly held manufacturing company. Your immediate superior is the controller who, in turn, is responsible to the...

Assignment 8-1 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,...

Please post your own discussion response to Ethics Case \#1 here! (note: After you submit your own discussion/response, you can see others' discussions, and then you can post your response to other...

please help thank u 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...

Uncolletible Accounts Accounts You have recently been hired as the assistant controller for Stanton Industries, a large, publicly held manufacturing company. Your immediate superior is the controller...

Ethics Case 1: Uncollectible accounts You have recently been hired as the assistant controller for Stanton Industries, a large, publicly held manufacturing company. Your immediate superior is the...

Introduction The purpose of this discussion forum is to give you an opportunity to apply your critical- thinking ability to the knowledge you've gained. The assignment provides you with an...

A normal probability plot can be constructed using MINITAB. Use the selections Stat: Basic Statistics Normality test, and select the data to be analyzed. Although the MINITAB plot is slightly...

On August 1, 2010, Christy Co. treasurer signed a note promising to pay $121,500 on December 31, 2010. The proceeds of the note were $114,000.00 rev: 05-10-2011 19.value: 15.00 points You did NOT...

Oteal is a publicly traded company that had developed and sold pharmaceutical products for the US market since the 1990s. As part of a new ambitious strategy, it began selling products in South...

AbnerCorporation's bonds mature in22 years and pay11 percent interest annually. If you purchase the bonds for$1,200, what is your yield tomaturity? Your yield to maturity on the Abner bonds...

3 What skills would managers need to be effective consultants or coaches to s elf-m anaging teams? Autonomous work groups were conceived as an open form of structure that allowed work groups to be...

1 In what ways could having temporary employees make an organisation more flexible? In Japan In Japan there is an erosion of the social contract that Japanese workers viewed as sacred for half a...

1 If a function is outsourced and consequently provided by an external supplier, the workers performing that function are no longer members of the parent organisation. This can have an impact on...