COMS & the Ghost of USRX w/ other STUFF Message Board

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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF

COMS 0.00130

-18.8%

Nov 7 11:47 AM EST

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To: David Lawrence who wrote (17486)	10/20/1998 2:10:00 PM
From: jhild	Read Replies (1) of 22053

Well I think to write down like that is like saying that they are adding these sales immediately to bad debt, but it is my understanding that you can't do that unless you have made a good faith effort to collect. Otherwise, this would seem to look like an installment sale, where there is no recognition of the revenues until the money is paid. I wonder how they account for this on their taxes, as I thought the IRS had closed the loophole on installment sales over 10 years ago. So I agree, this appears to be a curious approach. And they have been doing this since 1993? So evidently it seems to me that they are taking it as a tax benefit when the sales are increasing, though it is a drag to their actual shipped revenue statements. But when sales just fall off, while they may pay more taxes, they get some revenue from the previous qtr cushioning their reported sales to Wall Street. At the very least they must be deferring taxes right along.

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