What was the total value of Chesters' accounts receivable, net, as of December 31, 2024?
Chesters Franchise · 2025 FDDAnswer from 2025 FDD Document
mingham, Alabama April 4, 2024
CHESTER'S INTERNATIONAL, LLC BALANCE SHEETS DECEMBER 31, 2023 AND 2022
| ASSETS | ||
|---|---|---|
| 2023 | 2022 | |
| CURRENT ASSETS | ||
| Cash | $ 2,515,674 | $ 2,392,340 |
| Accounts receivable, net of allowance for | ||
| d |
Source: Item 21 — **FINANCIAL STATEMENTS (FDD page 48)
What This Means (2025 FDD)
According to Chesters' 2025 Franchise Disclosure Document, the company's accounting practices include recording accounts receivable at the amount they expect to collect, net of allowance.. Accounts receivable primarily consist of trade receivables from customers. The company extends credit based on an evaluation of the customer's financial condition.
As of December 31, 2023, Chesters' accounts receivable, net of allowance for doubtful accounts, totaled $5,299,346. In comparison, for the year 2022, the accounts receivable, net of allowance for doubtful accounts was $3,735,366.
It is important to note that the allowance for credit losses was $7,726 as of December 31, 2024, and $46,653 as of December 31, 2023. This allowance reflects management's estimate of potential uncollectible accounts, based on historical losses and current economic conditions. The fluctuation in these figures year-over-year could reflect changes in Chesters' customer base, credit policies, or the overall economic climate.