Question: In calculating the allowance for doubtful debts last year (year ended 30 June 2016) the accounts clerk who did the calculation made a big error in his excel spreadsheet and understated the amount significantly. Instead of allowing for 2% sales revenue ($2.5 million last year and $2.9 million estimated for the current year) which is the company's accounting policy, the amount allowed was just 0.02%. How should we treat this in the current year's financial statements? I have said that the board could decide on how we deal with this but unfortunately, we are equally divided and Charade said that as the problem is less than 5% of sales revenue it is not material. The sales director is concerned that his sales figures will be impacted by this. How should we treat this? Can the board just decide?