Problem
You have recently been hired as the Controller for a large publicly traded company that has experienced significant operating losses for the past few years, which has caused a sharp decline in the company's stock price.
The company has adopted the policy that all customer deposits received in advance of delivery are recorded as earned revenue on the day of cash receipt. In addition, the Company has ceased recording any allowance for doubtful accounts until any uncollectible receivables are fully written-off. Are there any ethical concerns with these policies? What would you recommend?