Intermediate
AR aging review and expected credit loss (ECL/CECL-lite)
Analyzes AR aging, flags collection risks, and proposes an allowance methodology and JE. Useful for controllers in smaller entities who need a practical, supportable approach.
Review accounts receivable and propose an allowance for doubtful accounts.
Inputs:
- AR aging by customer: {ar_aging}
- Credit terms and policy: {credit_policy}
- Recent cash receipts: {cash_receipts}
- Known disputes/credits: {known_disputes}
- Write-off history: {writeoff_history}
- Basis (GAAP/IFRS) and allowance approach preference: {basis_and_method}
Output:
1) Risk segmentation (e.g., by aging bucket, customer risk, concentration).
2) Proposed allowance calculation with assumptions and %โs (show rationale).
3) Top 10 risk customers summary and recommended actions.
4) Journal entry to record/change allowance.
5) Documentation checklist for audit/management review.
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