What was the net amount of write-offs for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| as of December 31, 2023 and allowance for | | | | doubtful accounts of $379 as of December 31, 2022 | | | | Total trade notes receivable, net | $ 24,751 | $ 25,730 |
Notes to Combined Financial Statements ($000's)
An analysis of the changes in trade notes receivable is as follows:
| For the years ended December 31, | 2023 | 2022 | |------------------------------------------------|--------------------|----------| | | | | | Balance at beginning of period | $ 26,275 $ | 28,389 | | Notes receivable, contributed, net | 1,652 | - | | Principal payments received | (16,293) | (13,699) | | Notes issued | 15,050 | 12,808 | | Net write-offs | (1,370) | (1,223) | | Gross trade notes receivable, at end of period | 25,314 | 26,275 | | Allowance for credit losses | (563) | - | | Allowance for doubtful accounts | - | (545) | | Net trade notes receivable, at end of period | $ 24,751 $ | 25,730 | An analysis of the changes in the trade notes receivable allowance is as follows:
| For the years ended December 31, | 2023 | 2022 |
|---|---|---|
| Allowance, beginning of period | $ 545 | $ 447 |
| Provisions for bad debts | 1,382 | 1,282 |
| Net write-offs | (1,364) | (1,184) |
| Allowance, end of period | $ 563 | $ 545 |
| Scheduled future maturities of trade notes receivable are as follows: |
| --------------------------- | -- |
|---|
| 2024 2025 2026 2027 2028 Thereafter | $ 9,619 4,795 3,965 2,882 2,085 1,968 |
|---|---|
| $ 25,314 |
Notes to Combined Financial Statements ($000's)
**7.
Source: Item 21 — Financial Statements (FDD page 91)
What This Means (2025 FDD)
According to Precision Door Service's 2025 Franchise Disclosure Document, there are several reported values for net write-offs in 2023. One table shows net write-offs of $(1,370) for the year ended December 31, 2023. Another table indicates net write-offs of $(1,356) for the year ending December 31, 2023. A third table shows net write-offs of $(1,364) for the year ended December 31, 2023. Finally, a fourth table shows net write-offs of $(574) for the year ended December 31, 2023.
These write-offs represent uncollectible trade notes receivable that Precision Door Service has deemed unrecoverable and has written off their books. Trade notes receivable are amounts owed to Precision Door Service, typically from franchisees or customers, for goods or services already provided. When these debts are considered uncollectible, they are written off, reducing the company's assets and impacting its profitability.
The presence of multiple figures for net write-offs in 2023 suggests that the financial statements may present this information in different contexts or for different segments of the business. A prospective franchisee should seek clarification from Precision Door Service regarding the discrepancies in these figures to fully understand the company's accounting practices and the overall financial health of the company.
Understanding the nature and magnitude of write-offs is crucial for a potential franchisee, as it provides insights into the credit risk associated with Precision Door Service's receivables and the effectiveness of its collection efforts. Monitoring these figures over time can also reveal trends in the company's financial stability and its ability to manage its assets effectively.