What was the reported amount for City Publications' accounts receivable as of December 31, 2023?

According to City Publications' 2025 Franchise Disclosure Document, the company's accounts receivable as of December 31, 2023, was $10,184. This figure represents the amount of money owed to City Publications by its customers for services rendered but not yet paid. Accounts receivable is considered a current asset on the balance sheet, indicating its short-term nature and expectation of collection within a year.

For a prospective City Publications franchisee, understanding the accounts receivable is crucial for assessing the financial health and operational efficiency of the franchisor. A higher accounts receivable balance could indicate potential issues with collecting payments from customers, which may impact the franchisor's cash flow. Conversely, a lower balance might suggest efficient billing and collection processes.

It's also important to note that City Publications' management evaluates individual customers' receivables based on their financial condition, credit history, and current economic conditions. The company writes off accounts receivable if they are deemed uncollectible. As of December 31, 2024, and 2023, City Publications did not have any allowance for doubtful accounts. In 2023, the bad debt expense was $0, while it was $312 in 2024 and $26,102 in 2022. This indicates that City Publications did not anticipate significant losses from uncollectible accounts receivable in 2023 and 2024.