Title: Uncollectible Amounts and Accounts and Earnings per Share

Contents

1. Identify the parties likely to be affected by this proposed action of reducing uncollectible amounts in form of bad debts as a means of increasing earnings per share (EPS). 

2. How will reducing the provision for uncollectible accounts affect the income statement and the balance sheet?

3. How will reducing the provision for uncollectible accounts in the current period affect the income statement and the balance sheet in a future period?

4. What argument might the CFO use to convince the company's internal auditors that this action is justified?

5. How might an analyst detect this earnings management activity?

6. How might this action affect the moral compass of your company? What repercussions might this action have?

Word count: 865 (2.88 pages)