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ACCOUNTS RECEIVABLE, NET	9 Months Ended
Oct. 31, 2021
ACCOUNTS RECEIVABLE, NET
NOTE 3 - ACCOUNTS RECEIVABLE, NET	NOTE 3 – ACCOUNTS RECEIVABLE, NET Accounts receivable are carried at their estimated collectible amounts. The balance is composed of trade accounts receivables that are periodically evaluated for collectability based on past credit history with customers and their current financial condition and amount due from Citibank for Automated Clearing House (ACH) transfers that were erroneously processed by Citibank (described below). Amount due from Citibank is the result of Automated Clearing House (ACH) transfers that were erroneously posted to the Company’s bank account. The Company first notified Citibank of ACH transfers that were erroneously posted to the account. Overall, 729,505 of ACH transactions had posted to its accounts that were not authorized. Citibank immediately recognized that it was an error under the Electronic Fund Transfer Act (EFTA) (15 U.S.C. 1693 et seq.) of 1978 and 12 CFR 1005.11 and proceeded to immediately replenished $392,921 of the unauthorized ACH transactions which resulted in a receivable due from Citibank of $336,584 as of October 31, 2021. In November 2021, an additional $247,908 was replenished by Citibank which resulted in a balance due from Citibank of $88,676. As of January 12, 2022, the balance due from Citibank was $88,676. This balance of $88,676 is expected to be replenished by the end of January 2022. The Company has accounts receivable of $1,762,725 and $1,040,410 as of October 31, 2021 and January 31, 2021, respectively (net of allowance for bad debt of $168,557 and $168,557, respectively).

ACCOUNTS RECEIVABLE, NET

9 Months Ended

Oct. 31, 2021

NOTE 3 – ACCOUNTS RECEIVABLE, NET

Accounts receivable are carried at their estimated collectible amounts. The balance is composed of trade accounts receivables that are periodically evaluated for collectability based on past credit history with customers and their current financial condition and amount due from Citibank for Automated Clearing House (ACH) transfers that were erroneously processed by Citibank (described below).

Amount due from Citibank is the result of Automated Clearing House (ACH) transfers that were erroneously posted to the Company’s bank account. The Company first notified Citibank of ACH transfers that were erroneously posted to the account. Overall, 729,505 of ACH transactions had posted to its accounts that were not authorized. Citibank immediately recognized that it was an error under the Electronic Fund Transfer Act (EFTA) (15 U.S.C. 1693 et seq.) of 1978 and 12 CFR 1005.11 and proceeded to immediately replenished $392,921 of the unauthorized ACH transactions which resulted in a receivable due from Citibank of $336,584 as of October 31, 2021. In November 2021, an additional $247,908 was replenished by Citibank which resulted in a balance due from Citibank of $88,676. As of January 12, 2022, the balance due from Citibank was $88,676. This balance of $88,676 is expected to be replenished by the end of January 2022.

The Company has accounts receivable of $1,762,725 and $1,040,410 as of October 31, 2021 and January 31, 2021, respectively (net of allowance for bad debt of $168,557 and $168,557, respectively).