Labwire Inc (LBWR)

[Bill_Investor]

Wrong again! The role of the auditor is to audit the information that management provided (not to create).

When revenue is booked, the offset is to accounts receivable.

Bad debt is booked as an estimate (based on company history) and offsets accounts receivable.

If you look at the bad debt expense, and the reserve against A/R, you'll see that those numbers are FAR less than the $208,000.

So how did they reverse this $208,000 when they only booked $5,800 as a reserve?