300.8 Allowance for Doubtful Accounts
ALLOWANCE: An allowance for doubtful accounts is established for all accrued SIS receivables. At a minimum the allowance should be recorded in Banner FIS by fund type level two as of June 30 of each year.
- An allowance for doubtful accounts is established for all non SIS receivables for which annual revenues in a single program exceed $250,000. The allowance must be estimated based on historical collections and monthly aging in 30, 60, 90, and over 120 day increments. At a minimum the allowance should be recorded in Banner FIS by fund type level two as of June 30 of each year.
- An allowance for doubtful accounts is established for all Notes Receivable.
- When a specific SIS, non SIS, or Note receivable account is determined to be uncollectible, the balance must be removed from the books by debiting the allowance account and crediting accounts receivable.
- Non SIS receivables for which annual revenues in a single program do not exceed $250,000 may us the direct write-off method or monthly aging method. The choice of method should be determined by the institutional business officer.
- Any exceptions to the above described methodologies must be approved by the Vice President for Finance and Administration and Controller.
- The estimated Bad Debt expense is calculated and reviewed annually. The calculation will be documented and forwarded to the Controller’s Office for review and to have available for the external auditors of the PSU financial statements.