What was the amount of bad debt for 1-800-GOT-JUNK? for the period ended May 31, 2025?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
May 31 May 31
Cash provided by (used in):
Operating: Net income for the period
$ 288,999 $ 266,526 Items not involving cash: Amortization 9,288 20,952 Deferred income tax expense 59,707 32,952 Current income tax expense 25,716
Interest accrued for due to related parties 303,956 178,974 Bad debt
145,077
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to the 2025 FDD, 1-800-GOT-JUNK?'s bad debt for the period ended May 31, 2025, was $0. This figure is explicitly listed as "-" in the consolidated statements of cash flows, indicating that there was no recorded bad debt for that period. In contrast, for the same period in 2024, 1-800-GOT-JUNK? reported $145,077 in bad debt.
Bad debt typically arises from accounts receivable that are considered uncollectible. The absence of bad debt for the period ending May 31, 2025, could suggest improved credit control, more effective collection efforts, or a change in accounting practices. Franchisees should inquire about the reasons for this change and whether it reflects a sustainable trend.
Prospective franchisees should investigate the factors contributing to the absence of bad debt during this period. Understanding the reasons behind this variance can provide insights into the financial management practices of 1-800-GOT-JUNK? and its approach to handling uncollectible accounts. This information can be valuable in assessing the financial stability and risk associated with the franchise.