Mathew's Marble, a National Supplier of Marble Products, Has Enjoyed

Essay

Mathew's Marble, a national supplier of marble products, has enjoyed several years of strong earnings during the recent housing boom. However, economists believe construction spending will be down significantly over the next couple of years. In an effort to maintain its current level of profitability, Mathew's Marble has decided to decrease its allowance for uncollectible accounts estimate from 3.5% to 2%. What effect will this action have on current and future period profits?