What was the reserved amount for doubtful accounts for the Gokhale Method as of December 31, 2023?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
Accounts receivable is primarily comprised of net royalty receivables from franchise, teachers, or class fees collected by GME.
The Company utilizes the allowance method of accounting for doubtful accounts. The allowance is based on management's review of all past due accounts. As of December 31, 2022, management believes that all receivables are collectable after year end.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, the company utilizes the allowance method for doubtful accounts, basing the allowance on management's review of past due accounts. However, as of December 31, 2022, management believed that all receivables were collectable after year end.
While the FDD details the accounting policies regarding doubtful accounts, it does not specify the reserved amount for doubtful accounts as of December 31, 2023. It only states that as of December 31, 2022, management believed all receivables were collectible.
A prospective franchisee should inquire with Gokhale Method about the specific reserved amount for doubtful accounts as of December 31, 2023, to gain a clearer understanding of the company's financial position and risk management related to accounts receivable.