20% of our business is cash based. Recently a $100 bill was deemed by our bank to be suspect counterfeit and sent for testing to the US
Counterfeit bills
Answers
Beth ~
This is best handled as a bad debt - and the bad debt would be for the full $100. End of the day, it was bad currency that is the problem - not the sale. This has little difference relative to a bad check.
The revenue occured, was recognized and any relevent costs were expensed under the normal course of business. The bad bill is a $100 expense.
Robert
Filed Under:
Accounting