120.60 Bad Debt Expense
Modified on: Mon, Mar 17 2025 1:07 PM- When checks are returned, the department that originally earned the revenue will have a receivable set up on their index/fund for the original check amount.
- The department will not be charged the NSF fee.
- The check writer has 1 year to pay. Therefore, the receivable will remain for 1 year. During that time business services has the right to turn over the balance to the Montana Department of Revenue offset program or an outside collection agency. However, business services typically does not have enough information to do this.
- At the conclusion of 1 year, business services will reverse the receivable because it has been deemed uncollectible and recognize a bad debt expense.