Other Receivables, Net

3 Months Ended

Sep. 30, 2020

Receivables [Abstract]

OTHER RECEIVABLES, NET

Note 4. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	September 30,			June 30,
	2020			2020
Advances to customers*	$	10,409,480		$	10,004,893
Employee business advances		7,227			51,334
Total		10,416,707			10,056,227
Less: allowances for doubtful accounts		(5,205,052	)		(10,005,193	)
Other receivables, net		5,211,655			51,034
Less: current portion		(6,915	)		(51,034	)
Total noncurrent portion	$	5,204,740		$	-

* As of September 30, 2020, the Company entered into certain contracts with customers (state-owned entities) where the Company’s services included freight costs and cost of commodities to be shipped to customers’ designated locations. The Company prepaid the costs of commodities and recognized as advance payments on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract terms are expired or the contracts are terminated by the Company. As aforementioned customers were negatively impacted by the pandemic and required additional time to execute existing contracts, they required additional time to pay. Due to significant uncertainty on whether the delayed contracts will be executed timely. The management reassessed the collectability of such advance payments and decided to recover of approximately $5.1 million of allowance for the three months ended September 30, 2020. As of September 2020, the Company has allowances for doubtful accounts due to contract delay of approximately $5.2 million.

Movement of allowance for doubtful accounts are as follows:

	September 30, 2020			June 30, 2020
Beginning balance	$	10,005,193		$	-
Provision for doubtful accounts, net of recovery		(5,106,085	)		10,055,203
Less: write-off		-			(1,763	)
Exchange rate effect		305,944			(48,247	)
Ending balance	$	5,205,052		$	10,005,193

For the three months ended September 30, 2020 and 2019, the recovery of provision for doubtful accounts was $5,106,085 and nil, respectively. The Company wrote off nil and $1,763 of other receivables for the three months ended September 30, 2020 and 2019, respectively.