What was the amount of 'allowance for doubtful accounts' included in the accounts receivable for Focalpoint Coaching in 2023?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
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Rich, Wightman & Company, CPAs, LLC
Las Vegas, Nevada
February 27, 2024
BALANCE SHEETS December 31, 2023 and 2022
ASSETS
| 2023 | 2022 | |
|---|---|---|
| CURRENT ASSETS | $ 102,789 | $ 74,422 |
| Cash | ||
| Accounts | ||
| receivable, | ||
| including | ||
| $18,334 | ||
| of | ||
| allowance for doubtful accounts for 2023 | 191,057 | 5,740 |
| Prepaid expenses | 36,837 | 18,000 |
| Total current assets | $ 330,683 | $ 98,162 |
| PROPERTY AND EQUIPMENT, at cost | ||
| Computer equipment | $ 32,573 | $ 31,036 |
| Furniture and fixtures | 21,698 | 15,573 |
| Website design | 0 | 108,360 |
| $ 54,271 | $ 154,969 | |
| L |
Source: Item 21 — Financial Statements (FDD page 56)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the accounts receivable for 2023 includes an allowance for doubtful accounts. The allowance for doubtful accounts in 2023 was $18,334.
An allowance for doubtful accounts is a contra-asset account that reduces the total amount of accounts receivable reported on a company's balance sheet. It represents the amount of receivables that the company estimates it will not be able to collect from customers. This is a standard accounting practice to provide a more realistic view of a company's financial health.
For a prospective Focalpoint Coaching franchisee, this figure indicates the level of risk Focalpoint Coaching faces in collecting its receivables. A higher allowance might suggest a more aggressive sales strategy or a higher risk of non-payment from franchisees or customers. It's important to note that this figure is just one data point and should be considered alongside other financial metrics and qualitative factors when evaluating the franchise opportunity.