{"id":"acct-allowance-rollforward-true-up-lines","audience":"accounting","category":"finance-work","track":"finance","technique":"verification","level":"intermediate","title":"Roll the bad debt allowance forward and compute the true-up","free":false,"task":"You're rolling forward the allowance for doubtful accounts. Write a prompt for plain text with lines starting \"Beginning:\", \"Provision:\", \"Write-offs:\", \"Recoveries:\", \"Ending before true-up:\", \"Required:\" and \"True-up:\". Write-offs reduce the allowance; recoveries increase it. Show the math. The True-up line gives the extra provision needed and says it needs controller approval. Under 100 words.","materialLabel":"Source material (attached to your prompt automatically)","material":"ALLOWANCE FOR DOUBTFUL ACCOUNTS - October 2026\n\nBalance at Oct 1: $40,000 (credit balance)\nProvision expense booked in October: $12,000\nAccounts written off in October (approved): $9,000\nRecoveries of previously written-off accounts received in October: $1,000. The cash was deposited and the AR clerk credited it to Bad Debt Recovery income.\n\nRequired allowance at Oct 31 from the aging-based analysis: $46,000\n\nAccounts: Allowance for Doubtful Accounts (1290); Bad Debt Expense (6900)\n\nNotes: the controller approves any adjustment to the allowance estimate over $1,000. The required balance was calculated by the credit manager using the October 31 aging report. The recovery reclass between income and the allowance is a separate item and is not part of the true-up amount.","rules":[{"type":"plainText"},{"type":"maxWords","max":100}],"promptHints":[{"label":"Names the seven lines","patterns":["beginning","provision","write-offs","recoveries","true-up"]},{"label":"States the sign rules","patterns":["write-offs reduce","recoveries increase"]},{"label":"Asks for the approval note","patterns":["controller","approv"]},{"label":"Asks for the math","patterns":["show the math","math"]},{"label":"Caps length","patterns":["\\d+\\s*words","under \\d+"]}],"mistakes":[{"title":"Subtracting recoveries","why":"The AI treats the $1,000 as a reduction.","fix":"Say: \"Write-offs reduce the allowance; recoveries increase it.\"","checks":["r1"]},{"title":"Skipping the approval","why":"The AI gives only the number.","fix":"Add: \"Say the controller approves adjustments over $1,000.\"","checks":["r2"]},{"title":"Missing labels","why":"The AI writes a table.","fix":"Add: \"Seven lines with these exact labels in order.\"","checks":["r0"]},{"title":"Markdown extras","why":"The AI adds bold labels, headings and a closing note.","fix":"Say: \"Plain text, no bold. Output only the lines asked for.\"","checks":["plainText"]},{"title":"Trusting the AI to count words","why":"AI is bad at counting and runs past word limits.","fix":"Ask for fewer words than the real cap and keep each part short.","checks":["maxWords"]}],"hint":"Roll-forwards need the sign rules stated. Add the approval requirement to the true-up line.","rubricLabels":["The seven lines start Beginning:, Provision:, Write-offs:, Recoveries:, Ending before true-up:, Required: and True-up: in that order","Ending before true-up shows $40,000 + $12,000 - $9,000 + $1,000 = $44,000","True-up shows $46,000 - $44,000 = $2,000 extra provision and says the controller approves it (over $1,000)"]}