FAR — Quick Sheet
Cash, Receivables & Bad Debts
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One-minute revision
- Cash equivalents: original maturity ≤ 3 months
- CECL: estimate lifetime expected credit losses at initial recognition, not just "incurred" losses
- Write-off: Dr. Allowance / Cr. A/R — no new expense hits at write-off
- Factoring without recourse = sale; with recourse = sale only if control transfers per ASC 860, else secured borrowing