POLICYANDPROCEDUREMANUAL

SOPNO:ACCTGAR0048/15
DEPARTMENT: ACCOUNTINGSUBSECTION:ACCOUNTSRECEIVABLE
SUBJECT:
BADDEBTWRITEOFFISSUEDATE:AUGUST31,2015

POLICY:BadDebtWriteoffsmustbeproperlyapprovedandrecorded.

PROCEDURE:

1. Thepropertymustexhaustallpossiblemeansofcollectionpriortodetermininganaccountis
uncollectible.

2. Onceanaccountisdeemeduncollectible,aBadDebtAuthorizationFormmustbecompleted
(attached).Therequestforwriteoffapprovalwillinclude:
a. Companyname
b. Copyoftheinvoice
c. Wasitproperlyapproved(i.e.,creditapplicationcompleted);
d. Reasonforwriteoff;
e. Collectionhistory/actiontaken

3. Minimumrequiredapprovalforwriteoffsisasfollows
a. Lessthan$2,500DirectorofAccountingandGM
b. Greaterthan$2,500DirectorofAccounting,GM,VPofOps,VPofFinance

4. Evidenceofapproval(signatureanddate)byappropriatepartiesmustbemaintainedonfile

5. Allmaterialwriteoffsmustbesenttoathirdpartyresponsibleforcollections.Ifcourtactionisan
option,suchanactionmustbereviewedforbusinesspurposesandcosteffectivenessbytheDirector
ofAccountingandGM.