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Part 1: What is the problem with the Manager asking you to adjust the bad debt loss until it meets the desired bonus?

Part 2: Using what you learned in accounting, what amount would you record as the bad debt expense and how did you calculate it.

Part 3: The manager would like a $50,000 year-end bonus. What would you record as bad debt expense and show your calculations?

Part 4: Is there any evidence of unethical behavior in this case? Provide a detailed response on why you consider the behavior ethical or unethical. Also incorporate how net income would be affected based on your answers to #2 and #3 and how this would affect stakeholders.

Part 1 What is the problem with the Manager asking you to adjust the bad debt loss until it meets the desired bonus Part 2 Using what you learned in accounting class=

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Part 1. The problem with the manager asking for an adjustment of the bad debt loss to meet the desired bonus is that it is unethical.

What is ethical accounting?

Ethical accounting follows the specific rules of the accounting profession and not the personal biases of management.

Accounting ethics deals with the following principles:

  • Integrity
  • Objectivity
  • Professionalism,
  • Confidentiality
  • Professional competence and due care.

Part 2. The amount that would be recorded as the bad debt expense is $10,560

Data and Calculations:

2% of $33,000 =       $660
5% of $14,000 =        $700

10% of $22,000 =  $2,200

25% of $12,000 =  $3,000

40% of $10,000 =  $4,000

Total                     $10,560

Part 3. The bad debt expense for the year would be $10,560 if there were no previous balance of the allowance for doubtful accounts.

Part 4. Since the required information is lacking, we can conclude that it is unethical behavior if the bad debt expense must be adjusted to meet the desired bonus target.

Learn more about ethical accounting at https://brainly.com/question/13396824

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