Show the figures to back up your statement. Not so hard surely. Quite clearly you do not understand common sense. When history's outstanding bad debt is reclassified in the current report it does not all of a sudden become that years bad debt.
It doesn't even make sense what you are saying why do you put it against receivables for one period vs many periods of bad debt?
About Accounts Receivable
A business's accounts receivable represent the accounts of debtors who owe money to the business. Most companies record these debts when they render services to a third party, who agrees to pay for the services later. Companies with accounts receivable typically require debtors to sign contracts promising to pay the balance of their accounts on or before a predetermined date.
I also have no idea how they can get bad debt from schools. Its bizare!
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