Receivables, Net

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Premiums, Commissions and Notes Receivable, Net

NOTE 7 – RECEIVABLES, NET

Receivables, net, include premium, commissions and notes receivable and are as follows:

	Year ended December 31
	2019			2018
Premium and commission receivable	$	2,178,476		$	2,001,732
Premium finance notes receivable		3,041,931			3,148,792
Total premium and notes receivable		5,220,407			5,150,524
Allowance for doubtful accounts		(1,200,970	)		(1,217,456	)
Receivables, net	$	4,019,437		$	3,933,068

Premium receivable and premium finance notes receivables are substantially secured by unearned premium and funds held as security for performance. Premium finance notes receivable represents the balance due to AAC, the Company's premium finance subsidiary, from policyholders who elected to finance their premium over a nine-month term. These notes are net of unearned finance charges and credit loss reserves.

Bad debt expense was $7,881 and $23,903 for the years ended December 31, 2019 and 2018, respectively.