Trending Content
Career Resources
WSO Free Modeling Series - Now Open Through
May 31, 2024
9 Free Financial Modeling Lessons
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
+Bonus: Get 27 financial modeling templates in swipe file
+Bonus: Get 27 financial modeling templates in swipe file
should be stated in internal controls. 30-45 days unpaid after invoice issuance is typically delinquent, but its a sliding scale (older debt > higher contribution to bad debt expense as percentage of the receivable)
Can you explain the last part more? Also, you’re saying after 60 days it’s completely written off?
It depends on the company, probably not a 60 day receivable. They'd take a percentage of it, say 1% (it would more for or less depending on the age of rec.), multiply it by the amount of delinquent receivable, and that would be added to the calculation of allowance for doubtful accounts. Bad debt expense is periodically debited to adjust the balance of allowance for doubtful accounts.
Yup this is exactly my experience at multiple companies. Note variability in different industries can result in different percentages and terms for bad debt
Can you explain this through an example or less accountanty lol
Autem consequatur ipsam id autem amet non. Sit at modi quae dicta neque ea placeat. Magni explicabo expedita voluptas natus perferendis fugiat occaecati. Quod ea odio maxime commodi. Dicta laborum eos totam repellendus aut corporis. Voluptatem at quisquam quasi sint vel enim. Ipsum perspiciatis minima perferendis repellendus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...