Truth in Reporting --Dickeson

But maybe we're financing our receivables for some cash-in-pocket and we have that nasty "trip-wire" provision in the arrangement. Suddenly that account is 61 days past due and then the receivable is reversed and back among expenses! Or is it sales again? And what kind of a sale is that?

Inventories are another set of assumptions as to age and value of stock on hand. Do we write them off—or just partly down? What assumption do we expense for shrinkage or aging? Shall we charge the reserve or expense for this Halloween orange fiber-gloss paper that we'll never use? And we've got to replace a valuable stock at market that's now a lot higher than we can expense.