Replies to post #205136 on Liquidmetal Technologies Inc (LQMT)

[Dell_Griffith]

No, revenues are recorded in the income statement when the invoice is issued. Receivables not received after a certain period are written off as bad debt.

Where did I say revenues aren’t recorded on the income statement? But, no, for larger businesses, allowances for bad debt are based on analytics. For a small company like this, they do a direct write-off as they realize the receivable will be uncollectible....eh, forget it. Good luck to you.

They record the revenues as product is shipped. The presumption is that it will all be collectible. However, they discovered that the customer from that shipment back in Q4 2019, is close to insolvent, so they record an estimate of that amount they believe they won’t collect.

To be clear, that has NOTHING to do with this customer. This customer is paying every 30 days as the monthly invoice comes in.