Description: Failed sports drink company Biosteel has left some big-name creditors on the hook. The company owes over $400 million to creditors and its financial problems appear to be linked to its strategy of recruiting expensive professional athletes for its marketing efforts. Several NBA franchises are owed hundreds of thousands of dollars. TSN and Rogers Communications also have large receivables from Biosteel that may have to be written off.
Date: September 20, 2023
1) Have you ever tried Biosteel’s Sports drink? What did you think of the product?
2) What do you think of Biosteel’s marketing strategy?
3) Pages 8.13 and 8.14 of Wiley’s Financial Accounting: Tools for Business Decision-Making discuss the process for writing off bad debts. What is the journal entry you would make to record a write-off?