Bad Debt

Company management must make a variety of estimates and judgments but few are as significant as the one that lies at the intersection of credit, accounting and sales.  "Collectibility is improbable."

As late as 1999, Microage was seemingly still on a roll.  The publicly-traded computer wholesale distributor based in Tempe, Arizona had reached $6.1 billion in sales, the technology bubble was still in full swing and although Microage's market capitalization was excessively low most creditors didn't seem to care.