What was the total value of accounts receivable, net, for Batteries Plus Bulbs in 2023?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Accounts receivable are stated at the amount the Company expects to collect from outstanding balances. The Company extends unsecured trade credit to its customers in the ordinary course of business, but mitigates the associated credit risk by performing credit checks, establishing credit limits and actively pursuing past due accounts. Trade credit is generally extended on a short-term basis. Thus, trade accounts receivables do not bear interest or finance charges. The Company accounts for customer balances that it has determined to be uncollectible with a charge to earnings and a credit to a valuation allowance based upon its assessment of the current status of individual accounts. Balances that are still outstanding after the Company has exhausted all reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.
Source: Item 21 — Financial Statements (FDD pages 79–80)
What This Means (2025 FDD)
I am unable to provide the specific total value of accounts receivable, net, for Batteries Plus Bulbs in 2023, as this information is not present in the provided excerpts from the 2025 Franchise Disclosure Document. While the document includes definitions of 'accounts receivable' and discusses the company's practices for managing and valuing these accounts, it does not disclose the actual financial figures for accounts receivable, net, for the specified year.
Specifically, the FDD excerpts detail that Batteries Plus Bulbs states accounts receivable at the amount they expect to collect from outstanding balances. They extend unsecured trade credit, manage credit risk through credit checks and limits, and actively pursue past due accounts. The company also accounts for uncollectible customer balances by charging earnings and crediting a valuation allowance. Balances are written off after all reasonable collection efforts are exhausted.
To obtain the specific figure for accounts receivable, net, for 2023, a prospective franchisee should carefully review the complete audited financial statements included in the 2025 FDD. If the information is still not available, they should consider asking Batteries Plus Bulbs directly for this financial data during their due diligence process. Understanding the company's accounts receivable is crucial for assessing its financial health and operational efficiency.