USA Dividend from bankrupted customer

Joined
Mar 24, 2016
Messages
2
Reaction score
0
Country
United States
Hi
I really need your help on this.
Our customer filed bankruptcy and we have uncorrectable sales amount of 15k. There is about 12k that we spent for our lawyer to get the 15k
At the end we received about $800.00 that they called dividend. But we were unsuccessful to get our 15k from the bankrupted customer.
The question is that this $800.00 goes to “other income” ? Or can we reduce our expense to the lawyer ? What is the correct recognition?
Appreciate your help on this.
thank you,

Alex
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,461
Reaction score
334
Country
United States
Did you start collection effort after the customer notified you of the bankruptcy?
 
Joined
Mar 24, 2016
Messages
2
Reaction score
0
Country
United States
Did you start collection effort after the customer notified you of the bankruptcy?
Yes. We made effort to correct the 15K but no result. Hence we passed the matter to our lawyer for the correction. After several attempt by lawyer we recently received $800.00 dividend from the bankrupted customer.
can we record to reduce our uncorrectable AR or reduce the expense to legal fees? Or is this other income?
Appreciate it for advice.

thank you,
Alex,
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,461
Reaction score
334
Country
United States
Sending you a private message. Sign in to forum then click on envelope at top.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,775
Messages
27,839
Members
21,814
Latest member
alea2024

Latest Threads

Top