2021-052A - Laserfiche WebLink

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(1) DICKERSON FLORIDA, INC. (A Wholly-owned Subsidiary of The Dickerson Group, Inc.). NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2019 and 2018 Summary of Significant Accounting Policies (d) Fair Value of Financial Assets and Liabilities (:continued) term loans. The recorded values of cash and cash equivalents, contracts receivable and accounts payable approximate their fair values based on their liquidity and/or short-term nature. The Company provides credit in the normal course of business, principally to various governmental and private entities, and performs ongoing credit evaluations, as deemed necessary but generally does not require collateral to support such receivables. The Company's debt is recorded at its carrying amount, which approximates the fair values, in the balance .sheets. Refer to Note 4 for further information regarding the Company's debt. (e) Receivables; Including Retainage Many of the contracts under which the Company performs work contain retainage provisions. Retainage refers to that portion of billings made by the Company but held for payment by the customer pending satisfactory completion of the project.. Unless reserved, the Company assumes that all amounts retained by customers under such provisions are fully collectible. Retainage on active contracts is classified as a current asset regardless of the term of the contract and is generally collected within one year of the completion of a contract. The Company anticipates to collect approximately 80% of the retainage in 2020. Receivables are written off based on individual credit evaluation and specific circumstances of the customer., when such treatment is warranted. The Company performs a review of outstanding receivables, historical Collection information and existing economic conditions to determine if there are potential uncollectible receivables. At December 31, 2019, $119,400 allowance for doubtful accounts against contracts .receivable was required. (12) (continued)