As the assistant controller for s industries you are and are responsible for preparing the year-end adjusting entry to estimate uncollectible accounts receivable. the company uses the allowance method. for the current year, you have used the historical percentage of 20% of total year-end accounts receivable as a reasonable estimate of amounts that won’t be collected. the controller is concerned about reporting a lower profit for the current year. the controller tells the assistant controller to lower the percentage to 10% this year which would lower the expense resulting in a higher net income. what should you do?

multiple choice

a. keep the percentage 20% since this is the most accurate and reasonable estimate for the company’s future uncollectible accounts receivable.
b. changing the percentage does not violate an ethical consideration.
c. lower the percentage to 10% to avoid questions from the company’s investors.
d. lower the percentage to 10% to make sure the controller gives you a good review and raise this year.