What was the provision for bad debts for Precision Door Service in 2023?
Precision_Door_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
15,243 | 13,059 | | Net write-offs | (1,356) | (1,178) | | Foreign currency translation | (2) | (59) | | Gross trade notes receivable, end of period | 26,330 | 29,050 | | Allowance for credit losses | (659) | - | | Allowance for doubtful accounts | - | (696) | | Net trade notes receivable, end of period | $ $ 25,671 | 28,354 |
Notes to Consolidated Financial Statements ($000's)
An analysis of the changes in the trade notes receivable allowance is as follows:
| For the years ending December 31, | 2023 | 2022 |
|---|---|---|
| Allowance, beginning of period | $ 696 | $ 441 |
| Provision for credit losses | 1,303 | - |
| Provision for bad debt | - | 1,413 |
| Net write-offs | (1,356) | (1,178) |
| Foreign currency translation | 16 | 20 |
| Allowance, end of period |
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 two different values reported for the provision for bad debts in 2023. One excerpt from Item 21 shows the provision for credit losses as $1,303 for the year ending December 31, 2023. Another excerpt from Item 21 shows the provisions for bad debts as $1,382 for the year ending December 31, 2023. Finally, another excerpt from Item 21 shows bad debt expense as $2,283 for the year ending December 31, 2023.
It is important to note that the FDD includes multiple financial statements, and these figures may appear in different statements (e.g., balance sheet vs. income statement) or may reflect different accounting treatments.
A prospective Precision Door Service franchisee should clarify with the franchisor the reason for the discrepancy in these figures to fully understand the company's financial reporting and potential impact on their franchise's financial performance.