I don’t know about fraud, that is yet to be determined. The definition for accounts receivable on the quarterly reports states “... supported by executed sales contracts with customers.” If Steve has executed sales contracts with the customers then he was accounting for the sales as he described.
Under generally accepted accounting principals he should have set up a contra account (reserve for uncollectible accounts) and we would have seen a more conservative number all along. With unaudited financial statements he didn’t adhere to GAAP and now we are writing off a large portion of the accounts receivable.
Under generally accepted accounting principals he should have set up a contra account (reserve for uncollectible accounts) and we would have seen a more conservative number all along. With unaudited financial statements he didn’t adhere to GAAP and now we are writing off a large portion of the accounts receivable.
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