{"id":4849,"date":"2014-04-14T06:14:49","date_gmt":"2014-04-14T04:14:49","guid":{"rendered":"http:\/\/www.officetodo.com\/public\/?p=4849"},"modified":"2014-04-13T06:15:35","modified_gmt":"2014-04-13T04:15:35","slug":"writing-down-group-of-receivables","status":"publish","type":"post","link":"http:\/\/www.officetodo.com\/public\/writing-down-group-of-receivables\/","title":{"rendered":"Writing down group of receivables"},"content":{"rendered":"

It is one thing to write down specific receivables, but what if you also have a considerable amount of smaller receivables (both the balance in total and the quantity of balances it comprises of)? You\u2019re expected to assess each individual receivable balance when considering their collectability, but it\u2019s not feasible that you go over each say 100 balances.\u00a0<\/span><\/span><\/p>\n

So as such, it\u2019s suggested that for the rest of the balances that you decided not to assess individually, you assess the collectability and the need for an allowance based on previous general experience and losses incurred from receivables not collected and written to expenses. If you have no previous experience, it\u2019s more difficult obviously, but be critical in considering not recognizing an allowance. Some of your receivables are more likely to be \u201cbad\u201d and you may face issues when trying to collect them.<\/span><\/span><\/p>\n

Provided you\u2019ve determined the amount (normally in the form of a percentage from the balance in total or sales per a specified period), you can account for the provision for the receivables. Note here that this provision should be measured against the parameters you\u2019ve determined preferably at each period end so to ensure it remains most accurate. Consider also if you\u2019ve got new information based on which you could say the percentage you write your receivables down has changed. Your estimates should always be based on the most recent information.<\/span><\/span><\/div>\n","protected":false},"excerpt":{"rendered":"

It is one thing to write down specific receivables, but what if you also have a considerable amount of smaller receivables (both the balance in total and the quantity of balances it comprises of)? You\u2019re expected to assess each individual receivable balance when considering their collectability, but it\u2019s not feasible that you go over each […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[69],"tags":[],"class_list":["post-4849","post","type-post","status-publish","format-standard","hentry","category-1-17-accounts-receivable"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t