DWCH » Topics » Allowance for Doubtful Accounts

This excerpt taken from the DWCH 10-K filed Dec 31, 2007.
Allowance for Doubtful Accounts
 
The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company analyzes accounts receivable and the composition of the accounts receivable aging, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Based upon the analysis and estimates of the uncollectibility of its accounts receivable, the Company records an increase in the allowance for doubtful accounts when the prospect of collecting a specific account receivable becomes doubtful. Actual results could differ from the allowances for doubtful accounts recorded, and this difference may have a material effect on the Company’s financial position and results of operations.

For the fiscal years ended September 30, 2007, 2006 and 2005, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:

   
2007
   
2006
   
2005
 
   
(in thousands)
 
                   
Allowance for doubtful accounts balance - beginning of year
  $
193
    $
294
    $
230
 
Additions to the allowance for doubtful accounts
   
57
     
11
     
75
 
Deductions against the allowance for doubtful accounts
    (27 )     (112 )     (11 )
Allowance for doubtful accounts balance - end of year
  $
223
    $
193
    $
294
 

 
This excerpt taken from the DWCH 10-K filed Dec 29, 2006.

Allowance for Doubtful Accounts

The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company analyzes accounts receivable and the composition of the accounts receivable aging, historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Based upon the analysis and estimates of the uncollectibility of its accounts receivable, the Company records an increase in the allowance for doubtful accounts when the prospect of collecting a specific account receivable becomes doubtful. Actual results could differ from the allowances for doubtful accounts recorded, and this difference may have a material effect on the Company’s financial position and results of operations.

For the fiscal years ended September 30, 2006, 2005 and 2004, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:

36




 

 

2006

 

2005

 

2004

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts Balance - Beginning of Year

 

$

294,000

 

$

230,000

 

$

230,000

 

Additions to the Allowance of Doubtful Accounts

 

11,000

 

75,000

 

105,000

 

Deductions Against the Allowance for Doubtful Accounts

 

(112,000

)

(11,000

)

(105,000

)

Allowance for Doubtful Accounts Balance - End of Year

 

$

193,000

 

$

294,000

 

$

230,000

 

 

This excerpt taken from the DWCH 8-K filed Jul 14, 2006.

Allowance for Doubtful Accounts

The IDARS Business Unit extends unsecured credit to its customers in the ordinary course of business but mitigates the associated credit risk by performing credit checks and actively pursuing past due accounts. An allowance for doubtful accounts is estimated and recorded based on management’s assessment of the credit history with the customer and current relationships with them.

This excerpt taken from the DWCH 10-K filed Dec 12, 2005.
Allowance for Doubtful Accounts – The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of customers to make required payments. The Company analyzes accounts receivable and the composition of the accounts receivable aging, historical bad debts, customer creditworthiness, current economic trends, foreign currency exchange rate fluctuations and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts. Based upon the analysis and estimates of the uncollectibility of its accounts receivable, the Company records an increase in the allowance for doubtful accounts when the prospect of collecting a specific account receivable becomes doubtful. Actual results could differ from the allowances for doubtful accounts recorded, and this difference may have a material effect on the Company’s financial position and results of operations.

 

For the fiscal years ended September 30, 2005, 2004 and 2003, changes to and ending balances of the allowance for doubtful accounts were approximately as follows:

 

 

 

2005

 

2004

 

2003

 

 

 

 

 

 

 

 

 

Allowance for Doubtful Accounts Balance - Beginning of Year

 

$

230,000

 

$

230,000

 

$

260,000

 

Additions to the Allowance of Doubtful Accounts

 

75,000

 

105,000

 

120,000

 

Amounts Applied Against the Allowance for Doubtful Accounts

 

(11,000

)

(105,000

)

(150,000

)

Allowance for Doubtful Accounts Balance - End of Year

 

$

294,000

 

$

230,000

 

$

230,000

 

 

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