accounts receivable allowance policy
Establishing an Allowance for Doubtful Accounts Policy. Management should establish an allowance for doubtful accounts to reflect the amount of an agencys receivables that management estimates will be uncollectible. The establishment of an allowance account ensures that the agencys receivables are not overstated for financial reporting purposes. Examples of these include, but are not limited to: 1  Student accounts receivable. 2  Student loans receivable. 3  Pledges receivable.  Future interests in split interest and trust 1  agreements. Grants & contracts receivable.  Notes 1  receivable. CUA Press accounts receivable.  Conferences & Summer Programs accounts receivable. Accounts Receivable Policy Page 2 of 3. Agricultural Foundation of California State University, Fresno. PURPOSE. It is the policy of the Agricultural Foundation of California State University, Fresno. (Ag Foundation) to collect payment for goods and services in a timely manner. To accomplish this, the following procedures have been implemented. Write-off of Accounts Receivable is the removal of an amount, or part of an. amount, of money owed to the County that had been determined to be a. receivable, from the accounts receivable subsidiary ledger. Policy: Departments that sell on credit or contract their services out shall collect. The university, to accurately recognize revenues on its financial statements, must provide for the possibility that some present and future revenues may not be collectible. To assure the most accurate data, methods of developing allowances for uncollectible amounts must be developed, based on actual experience and other relevant data. Reason for Policy. To provide guidelines and parameters necessary to establish an allowance for doubtful accounts to reflect the amount of student accounts receivables that is estimated will be uncollectible. Subject: COLLECTION OF DELINQUENT ACCOUNTS RECEIVABLE POLICY. Purpose: The purpose of this policy is to: 1. Define the parameters for the collection of delinquent accounts receivable for. monies owed to the County at any particular time. 2. Define the authority for the write-off of receivables. 3. Communicate to County Elected Officials, Department Heads and Employees. Accounts Receivable Policy Page 1 of 3. Agricultural Foundation of California State University, Fresno. AGRICULTURAL FOUNDATION OF. CALIFORNIA STATE UNIVERSITY, FRESNO. Policy No. 4002. Accounts Receivable Policy. This policy is applicable to the following auxiliary corporations: Agricultural Foundation. Text of Policy. 1  Accounts receivable must be reviewed on at least a monthly basis by the responsible collecting department (see below). Collection efforts on all receivables begin after the account is 30 days past due (this does not apply to currently enrolled students who must make financial arrangements with the respective campus business office). The establishment of a doubtful accounts allowance ensures that the receivables are not overstated for financial reporting purposes. To provide guidelines and parameters necessary to establish an allowance for doubtful accounts to reflect the amount of student accounts receivables that is estimated will be uncollectible.
1. Define the parameters for the collection of delinquent accounts receivable for monies owed to the County at any particular time. 2. Define the authority for the write-off of receivables. 3. Communicate to County Elected Officials, Department Heads and Employees.