ACC 280 Ethics Case BYP 9-6 The controller of Ruiz Co. believes that the yearly allowance for doubtful

ACC 280 Ethics Case BYP 9-6 The controller of Ruiz Co. believes that the yearly allowance for doubtful

ACC 280 Ethics Case BYP 9-6

ACC 280 BYP 9-6 The controller of Ruiz Co.

Principles of Accounting: Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2008). Financial Accounting (6th ed.). Hoboken, NJ: Wiley. Axia College of University of Phoenix (UoP)

Ethics Case BYP 9-6 The controller of Ruiz Co. believes that the yearly allowance for doubtful accounts for Ruiz. co. should be 2% of net credit sales. The president of Ruiz Co., nervous that the stockholders might expect the company to sustain its 10% growth rate, suggests that the controller increase the allowance for doubtful accounts to 4%. The president thinks that the lower net income, which reflects a 6% growth rate, will be a more sustainable rate for Ruiz Co.

Instructions:

a) Who are the stakeholders in this case?

b) Does the president's request pose an ethical dilemma for the controller?

c) Should the controller be concerned with Ruiz co.'s growth rate? Explain your answer.

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