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The reserve for doubtful accounts, meanwhile, was $700,000.
Neither did the company add to reserves for doubtful accounts, the former employee said.
The Justice Department and the S.E.C. are investigating issues, including how Friedman's treats doubtful accounts, to determine whether the company issued false financial statements, Friedman's said last month.
On Sept. 30 the company had $45.5 million, or 30% of its gross receivables, reserved for doubtful accounts.
What's more, the company lowered the allowance for doubtful accounts by $2.4 million, despite receivables shooting up by $45 million.
Raise its allowance for doubtful accounts between 1997 and 1998 by 6%, while its accounts receivable grew 36%.
Similar(41)
They said that auditors might be less willing to give in to managements and approve doubtful accounting if they knew a new audit firm would be reviewing the decisions.
Record the journal entry to create the doubtful account allowance.
Pavlo says he reported that MCI held $170 million in doubtful reseller accounts.
It is noteworthy that among the reforms at KHCC were "Western-style" credit controls which decreased doubtful receivable accounts to 1.2%.
The use of AFP as a screening test for early HCC is doubtful on account of its sensitivity of 39 64%, specificity of 76 91%, and low positive predictive value of 9 32% (Lai et al, 2012).
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