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Question - The Shaya Company, owner of Dharan Mall, charges Mother Care, Clothing Store a rental fee of $600 per month plus 5% of yearly profits over $500,000.
Abdullah Al Khateeb, the owner of the store, directs his accountant, Fahad Al Harbi, to increase the estimate of bad debt expense and warranty costs in order to keep profits at $475,000.
Instructions - Answer the following questions.
a. Should Al Harbi follow his boss's directive?
b. Who is harmed if the estimates are increased?
c. Is Mr. Al Khateeb's directive ethical?
Determine the number of units of product K to be manufactured in May and compute the May cash outlay for purchases of raw material A.
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he cost of the merchandise sold was $47,000. Received cash from sale of May 20, less discount, plus freight paid on May 21. Paid for purchase of May 21, less return of May 24 and discount.
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