Anton blair is the manager of a medium-size 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 recommendation to the accountant for year-end adjustments. one of his favorite recommentdations is for the controller to reduce the estimate of doubtful accounts.

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

2. do you believe blair's recommendation to adjust the allowance for doubtful accounts is within his right as manager, or do you believe this action is an ethics violation? justify you response.

3. what type of internal controls might be useful for this company in overseeing the managers recommendations for accounting changes?

Recently, verizon wireless ran a pricing trial in order to estimate the elasticity of demand for its services. the manager selected three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. one week later, the number of customers enrolled in verizon's cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. the manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company's 2016 annual revenues. one year later, the manager was perplexed because verizon's 2016 annual revenues were 10 percent lower than those in 2015"the price increase apparently led to a reduction in the company's revenues. did the manager make an error? yes - the one-week measures show demand is inelastic, so a price increase will decrease revenues. yes - the one-week measures show demand is elastic, so a price increase will reduce revenues. yes - cell phone elasticity is likely much larger in the long-run than the short-run. no - the cell phone market must have changed between 2011 and 2012 for this price increase to lower revenues.

At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. required: a. journalize the adjusting entry to record the accrued fees on december 31. refer to the chart of accounts for exact wording of account titles. b. if the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?

Selected transactions of the carolina company are listed below. classify each transaction as either an operating activity, an investing activity, a financing activity, or a noncash activity. 1. common stock is sold for cash above par value. 2. bonds payable are issued for cash at a discount