Auxiliary Standard Operating Procedures


SUBJECT:

Allowance for Doubtful Accounts and Write-offs for Non-Student Accounts Receivable

SOURCE:

Auxiliary Accounting, Financial Management Services

DATE ISSUED:

December 2004

DATE OF LAST

REVISION:

 

August 2019

ASOP NO:

6.0

RATIONALE:

To account for uncollectible receivables in accordance with Generally Accepted Accounting Principles (GAAP). All revenue producing operations should establish and use a method of bad debt recognition that includes establishing an Allowance for Doubtful Accounts.

ASOP

CROSS

REFERENCE:

Auxiliary Voucher Documentation

RESPONSIBLE

ORGANIZATION:

All auxiliary units reporting non-student accounts receivable

1"The matching principal means that revenues generated and expenses incurred in generating those revenues should be reported in the same income statement. Revenues for an accounting period are recognized in accordance with the realization principle. Then the expenses incurred in generating those revenues are determined in accordance with the matching principle. Thus, expenses are reported in the income statement for the accounting period in which the related revenues are recognized." (Intermediate Accounting, by Chasteen, Flaherty, and O'Conner; 1992; McGraw-Hill, Inc.; p.60).