Lakeview Industries — Financials

A second case, with one extra wrinkle

Same two-year roll-forward mechanic as Cobalt Property Group, but a different, independent company — and in Year 2, a customer balance is written off as uncollectible, cutting both Accounts Receivable and Net Income via Bad Debt Expense.

When a business determines a specific customer balance will never be collected, it writes the receivable off directly: Accounts Receivable is reduced and an equal Bad Debt Expense is recognized on the Income Statement.

Using the calculator

1. Set PP&E Useful Life and Tax Rate in the shared assumptions.
2. Enter Year 1 and Year 2 transactions, including any bad-debt write-off amount.
3. Confirm both years balance, and trace how the write-off reduces Accounts Receivable and Net Income together.