What was the net allowance for Learningrx's accounts receivable in 2022?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
Springfield, Missouri
January 3, 2024
LearningRx Franchise Corporation Balance Sheets As of September 30, 2023 and 2
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to Learningrx's 2025 Franchise Disclosure Document, the net allowance for doubtful accounts receivable in 2022 was $46,075. This allowance represents Learningrx's estimate of the amount of accounts receivable that may not be collectible. Accounts receivable are amounts due to Learningrx from its franchisees or other customers.
The allowance for doubtful accounts is a contra-asset account that reduces the gross amount of accounts receivable to its net realizable value, which is the amount that Learningrx expects to actually collect. The allowance is based on Learningrx's past experience, current economic conditions, and other factors that may affect the collectibility of accounts receivable.
A prospective Learningrx franchisee should understand how Learningrx manages its accounts receivable and determines the allowance for doubtful accounts. This information can help the franchisee assess the risk of uncollectible accounts and the potential impact on their financial performance. Franchisees may want to inquire about Learningrx's credit policies, collection procedures, and historical write-off rates.