Writing off a Short Term Loan


C

Carla

I have been carrying for a few years a "short term loan receivable"
amount. My boss now tells me that they don't owe us, and if they do
he can't go back on it. Believe it or not, although I disclose it on
every year's "notes to financial statements" he acts like he's never
seen it before. :O

Basically, what happened is we traded the value of our services for
Memberships in a land development LLC, for which we receive a
percentage of sales each year as return on investment.

The value of our services exceeded the value of the LLC memberships
and I booked the difference as a loan receivable. They made 2
payments, and the balance has been carried.

Ugh! I hate going back to the general ledger printouts that far
back!

What's the best way to get rid of this receivable? Suggestions?

thanks
 
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J

John

I have been carrying for a few years a "short term loan receivable"
amount. My boss now tells me that they don't owe us, and if they do
he can't go back on it. Believe it or not, although I disclose it on
every year's "notes to financial statements" he acts like he's never
seen it before. :O

Basically, what happened is we traded the value of our services for
Memberships in a land development LLC, for which we receive a
percentage of sales each year as return on investment.

The value of our services exceeded the value of the LLC memberships
and I booked the difference as a loan receivable. They made 2
payments, and the balance has been carried.

Ugh! I hate going back to the general ledger printouts that far
back!

What's the best way to get rid of this receivable? Suggestions?

thanks
Unless you have set up a a bad debt or loss allowance your entry would be
like any other loan write off -
debit loss (expense) account, credit short term loan receivables (asset)








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