Hello,
I had a large balance that was being held by an Escrow company in the USA after selling domain names/website.
They are fairly well known in the industry, so it was surprise when they said that my funds were comingled with general company spending, meaning my money that was being stored with the trusted Escrow company was spent illegally. It appears they had major cash flow problems.
They are starting to pay people back, but to lessen my risk in case they went bust, I have used some of my bad debt held with the company to buy other website addresses to people who are willing to wait for the Escrow company to send the money, which may or may not arrive.
For example, I bought a website address for $25k using the credit stored with the Escrow company, and the domain I bought is maybe worth $15k, if I do end up selling it, which can take time, meaning I overpaid by $10k, as I wanted to get some money back rather than risking ending up with nothing.
I am wondering what is the best way to account for this in Quickfile?
For example, say the balance held by the Escrow company is $50,000, do I write this figure off as bad debt, and any money I do get from the sale of the overpriced domains I bought with the credit can lessen this bad debt?
Thanks!