Reserve for Allowance of Doubtful Accounts
Area: Finance
Proposed: 4/22/08
Adopted: 7/22/08
Revised: 6/26/24
This policy relates to the college establishing an allowance for bad debt at fiscal yearend. The allowance represents management's estimate of the amount of student accounts receivable that will not be collected.
All tuition and fees on student accounts will be due and payable to the Bursar's Office. Instances of unpaid balances will be monitored by the Bursar and appropriate collections steps followed throughout the year.
The Chief Financial Officer and Bursar will review the fiscal year-end balances on all student accounts. Reserves for Allowance for Doubtful Accounts will be maintained and calculated by an appropriate method as determined by the Chief Financial Officer or designee.
See Also:
Procedure 609.1: Recording Bad Debt Expense
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