Receivables, Loans, Notes Receivable, and Others

12 Months Ended

Dec. 31, 2011

Receivables, Loans, Notes Receivable, and Others:

Loans, Notes, Trade and Other Receivables Disclosure

NOTE 5 - NOTES RECEIVABLE

At December 31, 2011 and December, 2010, the Company was owed a principal amount of $25,000 plus accrued interest of $13,867, from a promissory note due from a corporation. The note bears interest at a rate of 4.5% per annum. The principal and interest were due at maturity, which was December 31, 2008, and the note is in default.  Management believes that the Company needs to take legal action in order to collect the remaining principal balance and, accordingly, has established an allowance for a portion of the note deemed doubtful. Because legal action may become necessary, the Company booked an allowance for doubtful accounts of $38,867 and $25,000 as of December 31, 2011 and 2010, respectively.  Additionally, no further interest will be accrued as its collection is deemed not probable. The carrying value of the note, net of the allowance for doubtful accounts, was $0 and $13,867 at December 31, 2011 and 2010, respectively.