Directions and definitions for completion of the Annual Survey of
Uncollectables:
Standard Industrial Classification Code (SIC)
A 4-digit code developed by the Office of Management and Budget of the Executive Office of the President
to define industries in accordance with the composition and structure of the economy. If your company has
one or
more than one SIC code and you do not have separate receivable statistics,
please complete SECTION 1.
If separate receivable statistics are maintained for individual business
divisions, complete a separate calculation for
each SIC code using SECTION 2.
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
As a participant, you will receive a complimentary copy of the report.