R6 SUPPLEMENT 6509.15-77-1
EFFECTIVE 09/77
6509.15,22.45-22.51
Page 1 of 1
FSH 6509.15 - COLLECTION AND ANALYSIS OF TIMBER PURCHASERS'
COST AND SALES DATA
9/77 R-6 SUPP 1
CHAPTER 22 - COLLECTION
22.45 - Treatment of Specific Costs and Cost Recoveries.
1. Bad Debts. To achieve consistency and uniformity in this Region, sample
operator sales will be adjusted for bad debts and for bad debt recoveries.
Bad debt deductions will be limited to those resulting from sales to customers
during the year for which data are currently being collected and from sales to
customers during the preceding year.
The bad debt adjustment will consist of the addition of bad debt recoveries (both
footage volume and dollars) to sales of the year currently being collected and the
deduction of bad debts, as limited above, written off in the year for which data are
being collected. This deduction will include both the footage volume and dollar
amounts.
Should recoveries exceed write offs, the effect will be a net addition to both sales
footage volume and sales dollars; conversely, should write offs exceed recoveries, a
net reduction of both sales footage volume and sales dollars will result.
Adjustments for recoveries will be made on a pro-rata basis, i.e., if 50% of a
previously written off account is subsequently collected, then 50% of the volume will
be used with the amount to adjust sales currently being collected. If 10% is
recovered, 10% of the volume will be used, etc.
This policy requires that the "reserve" account where estimated credit losses are
recorded be analyzed at time of data collection to obtain write off and recovery data.
Also, miscellaneous income accounts must be analyzed to obtain recovery and other
appraisal related elements that may have been lodged in those accounts.