What was the beginning of period balance for accounts receivable for Crave Cookies as of December 31, 2022?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
expenses during the reporting period. Actual results could differ from those estimates.
Accounts Receivable
Accounts receivable are stated at the amount of consideration from customers of which the Company has an unconditional right to receive. The Company provides an allowance for credit losses, which is based upon a review of outstanding receivables, historical collection information and existing economic conditions. As of December 31, 2023 and 2022, there was no allowance for credit losses recorded.
Generally, the Company does not charge interest on past due accounts. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. During the years ended December 31, 2023 and 2022, credit loss expense related
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 47)
What This Means (2025 FDD)
Based on the 2025 Crave Cookies Franchise Disclosure Document, the company's policy regarding accounts receivable is to state them at the amount of consideration from customers for which Crave Cookies has an unconditional right to receive. The company assesses potential credit losses based on a review of outstanding receivables, historical collection data, and current economic conditions.
As of December 31, 2023, and December 31, 2022, Crave Cookies did not record an allowance for credit losses. This suggests that the company considered all accounts receivable fully collectible as of these dates.
For the years ending December 31, 2023, and December 31, 2022, Crave Cookies reported a credit loss expense related to doubtful accounts receivable of $5,000 and $0, respectively. This indicates that while there were no expected credit losses in 2022, the company recognized $5,000 in credit losses in 2023 where collectability was not reasonably assured.