What was the bad debt expense for 1-800-GOT-JUNK? for the period ended May 31, 2024?
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 Income taxes paid (292,897) (69,581)
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to 1-800-GOT-JUNK?'s 2025 Franchise Disclosure Document, the bad debt expense for the period ended May 31, 2024, was $145,077. This figure reflects the amount of accounts receivable that 1-800-GOT-JUNK? has determined to be uncollectible during that time.
Bad debt expense is a normal operating expense for businesses that extend credit to customers. It represents the cost of doing business on credit and the risk that some customers will not pay their bills. For a prospective 1-800-GOT-JUNK? franchisee, understanding the bad debt expense can provide insight into the creditworthiness of 1-800-GOT-JUNK?'s customer base and the effectiveness of its collection efforts.
It's important to note that this figure is specific to the period ended May 31, 2024, and may not be representative of other periods. Factors such as economic conditions, changes in credit policies, and the effectiveness of collection efforts can all impact the bad debt expense. A prospective franchisee should review the historical bad debt expense for 1-800-GOT-JUNK? over several periods to get a better understanding of this expense and its potential impact on their business.