What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?

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Welcome to the third discussion. In this course you will be introduced to a topic in the discussion. The first week of the module you will write about your initial thoughts after reviewing the resources. The initial post should be at least 300 words.

During the following week you will reply to at least two of your classmates. The replies should be at least 100 words. See the discussion rubric for more details on grading.

Discussions should always be completed prior to “class.” If you are in an online class or an on ground course this is prior to the lesson portion of the week. Are you ready to begin?

1. Review the following:
   Anton Blair is the manager of a medium-sized company. A few years ago, Blair persuaded the owner to base a part of his compensation on the net income the company earns each year. Each December he estimates year-end financial figures in anticipation of the bonus he will receive. If the bonus is not as high as he would like, he offers several recommendations to the accountant for year-end adjustments. One of his favorite recommendations is for the controller to reduce the estimate of doubtful accounts.
2. Initial Post (300 words)
   What effect does lowering the estimate for doubtful accounts have on the income statement and balance sheet?
   Do you believe Blair’s recommendation to adjust the allowance for doubtful accounts is within his rights as manager, or do you believe this action is an ethics violation? Justify your response.
   What type of internal control(s) might be useful for this company in overseeing the manager’s recommendations for accounting changes

APA format 12 new romans double spaced cited and References