ACCOUNTS RECEIVABLE

9 Months Ended

Sep. 30, 2011

ACCOUNTS RECEIVABLE

NOTE 5 – ACCOUNTS RECEIVABLE

Accounts receivable consist of the following as of:

	September 30, 2011 (Unaudited)			December 31, 2010
Accounts receivable	$	10,637,414		$	2,280,864
Less: Allowance for doubtful accounts		(5,661,709	)		(888,844	)
Accounts receivable, net	$	4,975,705		$	1,392,020

At September 30, 2011, net accounts receivable of $4,975,705 includes $2,327,307 for sales shipments which the Company has the legal right to collect but which management estimates the full accrual method criteria have not been met.  These accounts receivable are offset by a credit to deferred sales in the same amount and will be recognized as revenue when the full accrual criteria are met.