Other Receivables, Net

9 Months Ended

Mar. 31, 2021

Receivables [Abstract]

OTHER RECEIVABLES, NET

Note 5. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	March 31,			June 30,
	2021			2020
Advances to customers*	$	11,240,510		$	10,004,893
Employee business advances		592			51,334
Total		11,241,102			10,056,227
Less: allowances for doubtful accounts		(10,660,834	)		(10,005,193	)
Other receivables, net	$	580,268		$	51,034

* As of March 31, 2021 and June 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. As such, the Company had provided an allowance due to contract delay and recorded allowances of approximately $11.0 million. For the three and nine months ended March 31, 2021, the recovery of such allowances amounted to $94,046 and $124,216, respectively.   On December 1, 2020, the Company entered into a freight logistics services and import contract with a third party for equipment import. Per contract term, the Company will act as their freight carriers and in charge the import matter of such equipment. The Company agreed to pay a deposit of $580,000 which is based on 20% of the total carrying value of equipment on behalf of customer to secure the equipment. The advance will be repaid to the Company when the contract is fulfilled in around June 2021.

Movement of allowance for doubtful accounts are as follows:

	March 31, 2021			June 30, 2020
Beginning balance	$	10,005,193		$	-
Provision for doubtful accounts, net of recovery		(112,546	)		10,055,203
Less: write-off		(11,670	)		(1,763	)
Exchange rate effect		779,856			(48,247	)
Ending balance	$	10,660,834		$	10,005,193

For the three months ended March 31, 2021, the provision for doubtful accounts of other receivables was nil with recovery of $94,046. For the nine months ended March 31, 2021, the provision for doubtful accounts of other receivables was $11,670 with recovery of $124,216. There was no additional allowance or recovery of other receivables for the three and nine months ended March 31, 2020. The Company wrote off nil of other receivables for the three months ended March 31, 2021 and 2020, respectively. The Company wrote off $11,670 and $1,763 of other receivables for the nine months ended March 31, 2021 and 2020, respectively.