Accounts Receivable - net

12 Months Ended

Dec. 31, 2012

Accounts Receivable - net

Accounts Receivable - net

3. Accounts Receivable - net

	December 31,			December 31,
	2012			2011
Trade receivables (note 8)	$	25,605,726		$	20,779,992
Allowance for doubtful accounts	(2,935,659		)	(3,927,914		)
	22,670,067			16,852,078
Other receivables	770,068			982,329
Total accounts receivable	$	23,440,135		$	17,834,407

Accounts receivable with a carrying value of $5.6 million (RMB 35 million) were pledged as collateral for a bank loan (note 8).

The allowance for doubtful accounts reflects the Company’s best estimate of probable losses inherent in the accounts receivable balance. The Company estimates the allowance based on known troubled accounts, historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions, and other factors that may affect customers’ ability to pay. The Company records its allowance for doubtful accounts based upon its assessment of various factors. As of December 31, 2012, the Company provided 100% allowance for accounts receivable aged more than two years, approximately 48.5% (2011: 55%) allowance for accounts receivable aged between one year and two years, and approximately 4% (2011: 6%) allowance for accounts receivable aged less than one year.

The Company’s maximum exposure to credit risk at the balance sheet date relating to trade receivables is summarized as follows:

	December 31,		December 31,
	2012		2011
Aging within one year, net of allowance for doubtful accounts	$	22,065,143	$	16,025,464
Aging greater than one year, net of allowance for doubtful accounts	604,924		826,614
Total trade receivables	$	22,670,067	$	16,852,078