Common use of Doubtful Accounts Clause in Contracts

Doubtful Accounts. In the event a reserve for doubtful accounts is established to fairly state the collection probability of receivables, a schedule is required which reconciles the reserve balance to the general ledger and provides tenant level detail and applicable comments. Write-off Request Form: The Write-off Request Form verifies action was recommended by the Property Manager and Owner’s asset manager (“Asset Manager”) to write-off accounts receivable amounts. A copy of the signed form should be submitted with the monthly accounting package when applicable. All write-off requests require Owner Board approval. Free Rent and Rental Abatements: A schedule of all free rent or rental abatement activity should be included in the monthly accounting package. The accounting treatment and economics for such activity should be clearly explained. Schedule of Deferred Rent Concessions: Property Manager will calculate and provide supporting schedules for applicable FASB 13 adjustments on a lease-by-lease basis. Such adjustments will be included in the general ledger activity in accordance with US GAAP. Property Managers operating in Owner Yardi environment may not be subject to this requirement. Please confirm with your controller.