How are payments received on previously written-off accounts receivable treated by Ledgers?

According to Ledgers' 2025 Franchise Disclosure Document, the company writes off accounts receivable when they become uncollectible. Subsequently, any payments received on these previously written-off receivables are credited against credit loss expense.

For a prospective Ledgers franchisee, this means that if a client's account is deemed uncollectible and written off, any later payments from that client will reduce the overall credit loss expense for Ledgers. This policy directly impacts how Ledgers manages and accounts for potential losses from unpaid client accounts.

This accounting practice is fairly standard. It ensures that the company's financial statements accurately reflect the recovery of debts previously considered uncollectible. By crediting these payments against credit loss expense, Ledgers can offset some of the financial impact of the initial write-off, providing a more accurate picture of its financial health.