Other Receivables, Net

9 Months Ended

Mar. 31, 2023

Other Receivables, Net [Abstract]

OTHER RECEIVABLES, NET

Note 5. OTHER RECEIVABLES, NET

The Company’s other receivables are as follows:

	March 31,			June 30,
	2023			2022
Advances to customers*	$	4,186,368		$	3,943,547
Employee business advances		19,014			23,768
Total		4,205,382			3,967,315
Less: allowances for credit losses		(4,186,034	)		(3,942,258	)
Other receivables, net	$	19,348		$	25,057

* In fiscal year 2019 and 2020, the Company entered into contracts with several customers where the Company’s services included both freight charge and cost of commodities to be shipped to customers’ designated locations. The terms of the contracts required the Company to prepay the commodities.  The Company prepaid for the commodities and reclassified the payment as other receivables as the payments were paid on behalf of the customers. These payments will be repaid to the Company when either the contract is executed or the contracts are terminated by either party. The customers were negatively impacted by the pandemic and required additional time to execute the contracts, due to significant uncertainty on whether the delayed contracts will be executed timely, the Company had provided full allowance due to contract delay during the fiscal year ended June 30, 2020. The Company subsequently recovered $1,934,619 in fiscal year 2022.

Movement of allowance for doubtful accounts are as follows:

	March 31,		June 30,
	2023		2022
Beginning balance	$	3,942,258	$	6,024,266
Recovery of doubtful accounts		-		(1,934,619	)
Exchange rate effect		243,776		(147,389	)
Ending balance	$	4,186,034	$	3,942,258