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ALLOWANCE FOR CREDIT LOSSES ON TRADE RECEIVABLES
 12 Months Ended
Jul. 02, 2022
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
ALLOWANCE FOR CREDIT LOSSES ON TRADE RECEIVABLES ALLOWANCE FOR CREDIT LOSSES ON TRADE RECEIVABLES
Sysco determines the past due status of trade receivables based on contractual terms with each customer and evaluates the collectability of accounts receivable to determine an appropriate allowance for credit losses on trade receivables. To calculate an allowance for credit losses, the company estimates uncollectible amounts based on historical loss experience, including those experienced during times of local and regional disasters, the COVID-19 pandemic, current conditions and collection rates, and expectations regarding future losses.

In the third and fourth quarters of fiscal 2020, the company experienced an increase in past due trade receivables and recognized additional bad debt charges as a result of closures among our customers. These receivables were all created in fiscal 2020 and are referred to as pre-pandemic receivables. In fiscal 2022 and fiscal 2021, conditions improved and the company’s
results reflect a benefit on the reduction of its allowance for pre-pandemic receivable balances in both years, as the company made progress on obtaining payments from its customers. Sysco continues to work with its customers to collect past due balances, including the use of payment plans. As a result, the company’s allowance for credit losses has reduced accordingly, resulting in a $28.0 million and $184.8 million benefit on pre-pandemic receivables in fiscal 2022 and fiscal 2021, respectively.

A summary of the activity in the allowance for credit losses on trade receivables appears below:

 202220212020
 (In thousands)
Balance at beginning of period$117,695 $334,810 $28,176 
Adjustments to costs and expenses(15,494)(152,740)404,158 
Customer accounts written off, net of recoveries(23,823)(45,230)(83,915)
Other adjustments(7,588)(19,145)(13,609)
Balance at end of period$70,790 $117,695 $334,810