Hi there-
Was wondering if anyone has encountered this before. We have loans to outstanding businesses in which we eventually have to write off. We then contract a legal firm to help us collect on anything we may be able to collect, however anything they collect they take a fee. For example the legal firm may collect $100 but take $20 as a commission and send us the $80.
Weve been accounting for this as a $80 recovery, however Im wondering if this should in fact be a $100 recovery and a $20 expense. Ive checked ASC 310-10 and found nothing.
Any suggestions?
Thanks!
Was wondering if anyone has encountered this before. We have loans to outstanding businesses in which we eventually have to write off. We then contract a legal firm to help us collect on anything we may be able to collect, however anything they collect they take a fee. For example the legal firm may collect $100 but take $20 as a commission and send us the $80.
Weve been accounting for this as a $80 recovery, however Im wondering if this should in fact be a $100 recovery and a $20 expense. Ive checked ASC 310-10 and found nothing.
Any suggestions?
Thanks!