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Microcap & Penny Stocks : Syncronys Softcorp (SYCR) -- Ignore unavailable to you. Want to Upgrade?

To: Garfield who wrote (27061)	2/19/1998 8:50:00 PM
From: Freddie Forte	Read Replies (1) \| Respond to of 30240

I keep on reading throughout the conference call, "we have increased reserves by 2,000,000." What does this mean ? Is this a type of escrow account set up to absorb all returned product ? Is it in cash or an accounting entry ? If its cash and returns diminish, will it be recorded as revenue eventually ? Also, Mark Bestow stated......."Looking at our balance sheet, the most significant change is the decrease in Accounts Receivable, which resulted FROM a 1.5 million reduction in Deferred Revenues along WITH an additional 2 million reserve allowance." So by reducing deferred revenue and setting up a reserve account, they decreased accounts receivables. They're taking money owed them(accts.rec.), and setting it aside for potential returns with an accounting entry? Hmmmm. Interesting. I still don't understand this reserve allowance completely. Anyone want to take a stab at it? Is it cash or a journal entry ?