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Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.
The problem her is will the deferred revenue arrive and, in the longer term, will the debtors pay up? It would be traditional to include a provision for bad or doubtful debts in the company's accounts to allow for this contingency. It brings back memories of my old examinations where such provisions were always included in final accounts.
To date there is no attached document, sorry!
Have you no background information regarding debtor payment possibilities?
Here is some advice from Accounting Tools:
'A business typically estimates the amount of bad debt based on historical experience, and charges this amount to expense with a debit to the bad debt expense account (which appears in the income statement) and a credit to the provision for doubtful debts account (which appears in the balance sheet). The organization should make this entry in the same period when it bills a customer, so that revenues are matched with all applicable expenses (as per the matching principle).'
Unfortunately that throws the onus on you and to date you have no indication of hew responsive your debtors accounts will be. Perhaps 10% might be appropriate.
Well I have given you an inkling. Do you have contact with others in this business?
Hi, I am one of the Experts. Let me work out on your excel sheet and then i attach it for you to take a look. Please give me few minutes to do so now.
Please take a look on to the attached file. Hope you are happy now?
Thank you so much.