You are a bank manager The owner of a small business has come to see you about a loan He presents you with the financial statements of his business The accounts receivable are reported at the amount customers have promised to pay The owner says he writes off bad debts once he decides the amount won...

The owners decision criteria for writing off receivables needs to be e ...

You are a bank manager. The owner of a small business has come to see you about

Question:

You are a bank manager. The owner of a small business has come to see you about a loan. He presents you with the of his business. The are reported at the amount customers have promised to pay. The owner says he writes off bad debts once he decides the amount won't be collected. Do you have any concerns about how the receivables are reported on the balance sheet? Explain. What information about the receivables would you want?

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...