Archive for March, 2021

Bad debt carries significant legal implications that can affect a company’s dissolution process. Understanding these implications is essential to navigate potential legal challenges and ensure compliance with relevant regulations. Consider a roofing business that agrees to replace a customer’s roof for $10,000 on credit. The project is completed; however, during the time between the start of the project and its completion, the customer fails to fulfill their financial obligation. Bad debt can be reported on the financial statements using the ...