Tax Rules: Final: 5703-3
5703-3-15 - Allowances of reserves
against accounts receivable
Any taxpayer, whether individual, fiduciary or corporation,
whose accounts of assets and liabilities are kept in such a
way as to show accounts receivable and notes receivable as
assets at face value, with proper reserves for bad debts and
the like, may, in setting forth the total amount of accounts
receivable, arrive at the amount thereof by deducting from
the total amount of accounts receivable as per books, the
total amount of such reserve or reserves; provided that in
case such reserve or reserves are carried against all the
accounts or notes receivable, the deductible portion of such
reserves shall be the same proportion thereof as current
accounts receivable (payable on demand or within one year
from date of inception) bears to total accounts receivable.
In arriving at the amount of current accounts receivable and
prepaid items used and arising out of business outside of
Ohio, such proportion of the net deductible reserves, etc.,
as defined in the preceding paragraph, shall be deducted from
the face value of foreign accounts receivable and prepaid
items as the accounts receivable arising out of business
transacted outside of Ohio bears to total accounts
receivable.
Effective: 7-25-39 as TX-41-14
Promulgated under: 5703.14