i want to know that when i send the circularization for receivable. the customer will confirm that the receivble exists in writing to me , there fore i can confirm the receivable balance (valuation ) by this method. how u said that this method cant be used for valuation. plz clarify it. regards thanks
It is not conclusive or sufficient on valuation. A devious customer could confirm the debt ( to stop you worrying) but have no intention or ability to pay up.