What was the allowance for credit losses for Precision Door Service as of December 31, 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amounts due within one year, net of allowance for credit | |||
|---|---|---|---|
| $9,530 | 7,846 | ||
| losses of $89 as of December, 31, 2023 and allowance for | |||
| doubtful accounts of $166 as of December 31, 2022 | |||
| Amounts due after one year, net of allowance for credit | |||
| losses of $474 as of December 31, 2023 and allowance for | 15,221 | 17,884 | |
| doubtful accounts of $379 as of December 31, 2022 | |||
| Total trade notes receivable, net | $24,751 | $25,730 |
Source: Item 23 — Receipts (FDD pages 92–433)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, the allowance for credit losses as of December 31, 2023, was $89 for amounts due within one year. Additionally, there was an allowance for credit losses of $474 for amounts due after one year as of the same date. These allowances are netted against the amounts due to arrive at the net receivable amounts presented in the financial statements.
These figures represent Precision Door Service's estimate of uncollectible accounts receivable. The allowance for credit losses reduces the amount of accounts receivable that Precision Door Service expects to collect. This is a standard accounting practice to provide a more accurate view of the company's financial position.
For a prospective franchisee, understanding these figures can provide insight into the credit risk associated with Precision Door Service's receivables. While these are figures from the franchisor's financial statements, franchisees should consider how their own credit policies and customer base might affect their individual risk of uncollectible accounts. It is important to note that these figures reflect the overall financial health of Precision Door Service and may not directly translate to the performance of an individual franchise location.