Abstract:
Receivables represents a number of bills that will be received by a company
generally in the form of cash from other parties, as a result of the sale of goods and
services on credit. Accounts receivable often faced with the risk of being
uncollectible which resulted to big losses for the company. This research was
conducted at PT. Jotun Powder Coatings Indonesia to analyze effect of bankruptcy
decision on one of key customer of PT. Jotun Powder Coatings Indonesia. This
research used qualitative method with inductive approach that cannot be measure
by number. Data collection technique used is collecting all document that are
related to financial statement and interviews of all staff who are connected with this
research. The result of this research shows there had been a significant sales
increased, especially to related parties. But, the bankruptcy decision of customer
did not directly affect the income statement result of PT. Jotun Powder Coatings
Indonesia because of significant sales increase but have significant effect on cash
flow. This make turnover receivable more slower than years before since most of
the sales are on credit. Based on the result of this study, the researcher have some
recommendation to improve the credit policy to customers and review all credit
facilities provided to customers who often delay payment, so the company can
avoid or minimize uncollectable receivables.
