ethical conclusion for doubtful accounts

ivory5130 · #1 Jun 21, 2007, 09:20 PM

Do you think that a manager's recommendation to adjust the allowance for doubtful accounts is within their right as a manager or is this an ethics violation? If you can give me a hint maybe I can come up with a reasonable answer but as of right now I don't have a clue.

bhet · Jun 22, 2007, 09:17 AM

it wont be a violation of the code of ethics as long as the management has the grounds to support their reason why they have lowered the doubtful accounts. it would also be thier right to lower the doubtful accounts if they see improvement in collecting recievables.



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