I have been asked to change the aging category of a large account from over 120 days to current and to prepare a new invoice with a revised date, to change the allowance for uncollectable accounts from 180000 to 135000. I did ask why we would do that and I was told we need the extra income.
Can someone help?

I have been asked to change the aging category of a large account from over 120 days to current and to prepare a new invoice with a revised date, to change the allowance for uncollectable accounts from 180000 to 135000. I did ask why we would do that and i was told we need the extra income.
Can someone help?
Well that is legal because as time passes the account is likely that it will not get pay so to prevent from taxes on that uncollectable money or that it looks uncollectible allowence for doutful accounts are increment and ifs the other way around if the money is taken out it could only be if there is a note payable that the amount to be pay for is going to be pay for. If its not the company want to show a greated accounts receivable showing greater profit or simply because the compabny is running on red but that is not illegal unless that money was all ready reported and been tax free after the accounting period.

I have been asked to change the aging category of a large account from over 120 days to current and to prepare a new invoice with a revised date, to change the allowance for uncollectable accounts from 180000 to 135000. I did ask why we would do that and i was told we need the extra income.
Can someone help?


This is unfortunately common. A bit unethical, yes, bust still resorted to. It is a clear sign that company is not doing well.

Likely they borrow money at the bank based on current invoices, using the invoices as collateral. Banks generally will not lend against old invoices.

And yes, if they have the practice of reserving against old invoices, and this makes the invoice look new, then it is a reported income issue. It's flim flamery, a sign that management can't be trusted once things get a little inconvenient.

A more stringent test, one that traps this kind of activity, is to base write downs on months of revenue in the accumulated receivables accounts (both billed and unbilled combined) counting back the revenue in most recent months.