ACCOUNTS RECEIVABLE

12 Months Ended

Jan. 02, 2015

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE

5. ACCOUNTS RECEIVABLE

        Accounts receivable consisted of the following at January 2, 2015 and December 27, 2013:

	January 2, 2015			December 27, 2013
Billed	$	13,151,000		$	12,879,000
Unbilled		12,170,000			9,635,000
Contract retentions		700,000			673,000
		26,021,000			23,187,000
Allowance for doubtful accounts		(662,000	)		(385,000	)
	$	25,359,000		$	22,802,000

        The movements in the allowance for doubtful accounts consisted of the following for fiscal years 2014, 2013 and 2012:

	Fiscal Year
	2014			2013			2012
Balance as of the beginning of the year	$	385,000		$	303,000		$	421,000
Provision for doubtful accounts		486,000			189,000			220,000
Write-offs of uncollectible accounts		(209,000	)		(107,000	)		(341,000	)
Recoveries of accounts written off		—			—			3,000
Balance as of the end of the year	$	662,000		$	385,000		$	303,000

        Billed accounts receivable represent amounts billed to clients that have yet to be collected. Unbilled accounts receivable represent revenue recognized but not yet billed pursuant to contract terms or accounts billed after the period end. Substantially all unbilled receivables as of January 2, 2015 and December 27, 2013 are or were expected to be billed and collected within twelve months of such date. Contract retentions represent amounts invoiced to clients where payments have been withheld pending the completion of certain milestones, other contractual conditions or upon the completion of the project. These retention agreements vary from project to project and could be outstanding for several months.

        Allowances for doubtful accounts have been determined through specific identification of amounts considered to be uncollectible and potential write-offs, plus a non-specific allowance for other amounts for which some potential loss has been determined to be probable based on current and past experience.

        As of January 2, 2015, one client accounted for 17% of outstanding receivables, as compared to 26% of the Company's outstanding receivables as of December 27, 2013.