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Percentage of Receivables that exceed $200,000: Obtain a sample of records to determine the percentage of receivables that exceed $200,000, based on book value. The
Percentage of Receivables that exceed $200,000: Obtain a sample of records to determine the percentage of receivables that exceed $200,000, based on book value. The TDR for receivables exceeding $200,000 is 5 percent, and the EPDR is 3 percent. Megan believes that a high percentage of receivables with values above $200,000 would place a large interest cost on the company and would lower its most favorable credit rating.
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