Annual Credit Sales: Actual billings include freight, taxes and containers; not the sales shown in
the accounting records, where such items are excluded for your last fiscal year.
 
Annual Net Bad-Debt Writeoffs: Chargeoffs less recoveries.
 
Allowance for Uncollectables: Allowance for chargeoffs.
Exclude uncollectable amounts such as allowances for returned merchandise, defective goods and discounts.
 
Collectable Trade Receivables: All open domestic accounts and notes for current billings, deferred
billings or datings, past-due billings, suspense accounts, charge backs, and accounts placed for collections.
Where receivables are sold to a captive finance company, give the experience of the captive company.
If only a portion of the receivables are sold, include receivables of both parent and captive.  Companies with
leasing agreements should report only the portion of those leases that have been billed.
Exclude uncollectable amounts such as allowances for returned merchandise, defective goods, and discounts.
 
Net Bad-Debt Writeoffs as a Percent of Sales:

            Net Bad-Debt Writeoffs        x        100
            Credit Sales

            $1,670             x        100    =    .2386%
            $700,000
 

Allowance for Uncollectables as a Percent of Receivables:

            Allowance for Uncollectables        x        100
            Collectable Trade Receivables

            $6,150            x        100    =    2.5%
            $250,000