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Personal Finance (Not Investing) • Buying a medical practice… help me understand the accounting

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Why are the sellers not keeping their accounts receivables and your wife starts with a clean slate?
They essentially are but it’s a matter of getting the remaining AR amount that is expected to be collected (according to historical data) but not yet paid of the 90 days prior to the closing date to the seller. The idea was to pay one lump some of this remaining amount to the seller on the day of closing instead of writing checks to the seller as those payments trickle in.

Statistics: Posted by Carguy85 — Sat Nov 09, 2024 5:03 am — Replies 4 — Views 283



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