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Scenario question

Scenario question

Scenario question

Question Description

You have been hired as an assistant for XYZ industries, a large manufacturing company. Your supervisor is the controller who assigned you to prepare the end year adjusting entries. An appropriate estimated Balance for allowance for incollectable Accounr is 180,000. The existing balance in the account prior to adjusting entry is 20,000 credit balance. After showing analysis to the controller you have to change the aging category of an account from over 120 days to current and prepare a new invoice. The uncollectible account changes to 135,000.
1. what is the rationale for the calculations used to estimated the $180,000

2 how do you think the misstatement of funds will impact the income state balance

3. What is the ethical dilemma you face

4 identify the key internal and external stakeholders. What are the negative impacts

5 what are the consequences of you don not comply with the supervisors instrctionds

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