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Unformatted text preview: estimate of bad debts is sound. On the other hand, she recognizes that a great deal of subjectivity is involved in the computation. Instructions a) What, if any, is the ethical dilemma for Devers? b) Should Devers knowledge of the compensation plan be a factor that influences her estimate? c) How should Devers respond to Adkins request? a) Devers identifies that changing the estimates will benefit Adkins and the other executives of the company. The current stockholders will be forced into paying the bonuses because of the estimates being changed by Devers. b) Devers result shouldnt be based on the existence of the compensation plan. She should act as the accountant and do the right thing. c) The request that Adkins makes should be rejected....
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This note was uploaded on 10/03/2010 for the course ACCT Acct taught by Professor Straus during the Spring '10 term at University of Maryland Eastern Shore.
- Spring '10