What was the accounts receivable balance for Amerispec Inspection Services as of March 31, 2023?
Amerispec_Inspection_Services Franchise · 2025 FDDAnswer from 2025 FDD Document
Cash*
The Company maintains cash depository accounts, which, at times, may exceed federally insured limits. This risk is mitigated by maintaining all deposits in high quality financial institutions. The Company has not experienced any losses in such accounts.
Accounts Receivable
The Company records accounts receivable at their estimated net realizable value. Management monitors accounts receivable for delinquency and provides for probably uncollectible amounts through a charge to earnings and a credit to the valuation allowance based on its assessment of the current status of individual accounts, any known trends or uncertainties related to customer billing and account collectability, current economic conditions, and reasonable supportable economic forecasts. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the v
Source: Item 23 — Receipts (FDD pages 47–172)
What This Means (2025 FDD)
According to Amerispec Inspection Services' 2025 Franchise Disclosure Document, the accounts receivable balance was $648,278 as of March 31, 2023. The company records accounts receivable at their estimated net realizable value. Management monitors accounts receivable for delinquency and provides for probable uncollectible amounts through a charge to earnings and a credit to the valuation allowance.
Management's assessment considers the current status of individual accounts, any known trends or uncertainties related to customer billing and account collectability, current economic conditions, and reasonable supportable economic forecasts. Balances that remain outstanding after the Company has used reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.
As of December 31, 2024 and 2023, management determined that an allowance for credit losses of approximately $366,000 and $11,500 was necessary, respectively. Additionally, as of December 31, 2023 the Company had accounts receivable from a member and officer of the Company of approximately $115,000 and is included as a component of accounts receivable on the accompanying consolidated balance sheet.