Description: The Province of New Brunswick is not rich. That’s perhaps one reason why the Auditor General focused some of her attention in her recent report on the fact that the federal government owes the province a pretty big pile of cash. All together, the federal government is on the hook for over $60 million dollars of relief funding for a series of seven natural disasters dating as far back as 2010. While some money has come in from the federal government, this account receivable seems to require some very careful management.
Date: January 23 , 2019
1) Have you ever lived in a community that suffered a natural disaster and had to receive government help to recover?
2) Why do think it takes the federal government so long to pay the amounts owing on the province’s request for disaster relief funding?
3) Where can you find a discussion of bad debt expense and the allowance for doubtful accounts in Wiley’s Financial Accounting: Tools for Business Decision-Making ?