Accounts and notes receivable

9 Months Ended

Mar. 31, 2016

Accounts and notes receivable [Text Block]

Note 4 – Accounts and notes receivable

Accounts and notes receivable are generated from concrete products sold to the Company’s customers and other concrete companies with which the Company conducts business. The payment terms are defined in the respective contracts. Notes receivable represents trade accounts receivable due from various customers where the customers' banks have guaranteed the payment. The notes are non-interest bearing and normally paid within three to six months. The Company has the ability to submit requests for payment to the customer's bank earlier than the scheduled payment date, but will incur an interest charge and a processing fee.

Based on the historical experience and its individual evaluation process, the Company’s estimates of its allowance for doubtful accounts as of March 31, 2016 were as follows: 15% for accounts receivable past due more than 180 days but less than one year, 60% for accounts receivable past due from one to two years, 75% for accounts receivable past due beyond two years, and 100% for accounts receivable past due beyond three years, plus any additional amounts as necessary.

Accounts and notes receivable and allowance for doubtful accounts consisted of the following:

		March 31,			June 30,
		2016			2015
Accounts receivable	$	65,566,307		$	68,566,418
Notes receivable		-			-
		65,566,307			68,566,418
Less: Allowance for doubtful accounts		(24,248,822	)		(28,209,249	)
Total accounts and notes receivable, net	$	41,317,485		$	40,357,169