What was the reported value of accounts receivable for Amerispec Inspection Services?
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 the 2025 FDD, AmeriSpec Inspection Services reported an accounts receivable balance of $648,278 as of March 31, 2023. This figure represents the total amount of money owed to AmeriSpec by its customers for services rendered but not yet paid.
The FDD also indicates that AmeriSpec Inspection Services maintains an allowance for credit losses to account for potentially uncollectible amounts. As of December 31, 2024, the allowance for credit losses was approximately $366,000, and as of December 31, 2023, it was approximately $11,500. This allowance reduces the net realizable value of the accounts receivable, reflecting the company's estimate of the amount it ultimately expects to collect.
AmeriSpec Inspection Services' management monitors accounts receivable for delinquency and adjusts the allowance for credit losses based on factors such as the status of individual accounts, customer billing trends, economic conditions, and economic forecasts. Balances that remain outstanding after reasonable collection efforts are written off against the valuation allowance. This approach to managing accounts receivable is typical for businesses that extend credit to their customers, as it provides a more accurate picture of the company's financial health by accounting for potential losses.