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Accounts Receivable
3 Months Ended
May 31, 2012
Receivables [Abstract]  
Accounts Receivable

 

NOTE 3 - ACCOUNTS RECEIVABLE

 

Accounts receivable is generated from sales of wind turbine systems and power efficiency products. At May 31, 2012, accounts receivable were substantially comprised of balances due from end customers and dealers.

 

As of the February 29, 2012, the Company has created an allowance for doubtful accounts equal to 2% of accounts receivable. While the Company has not experienced any customer defaults to date, it has elected to begin reserving for potential bad debts.

 

    May 31,
2012
    February 29,
2012
 
Accounts receivable   $ 642,235     $ 1,059,750  
Less: Allowance for doubtful accounts     (13,176 )     (22,972 )
Accounts receivable, net   $ 629,059     $ 1,036,778  

  

Notes receivable are generated from sales of wind turbine systems. At May 31, 2012, notes receivable were comprised of balances due from end customers. The term of the notes receivable is seven years at an annual interest rate of 4.5%. Payments are received on a monthly basis.