ACCOUNTS RECEIVABLE AND CUSTOMER DEPOSITS

9 Months Ended

Sep. 30, 2018

NOTE 3. ACCOUNTS RECEIVABLE AND CUSTOMER DEPOSITS

Our accounts receivables consisted of the following:


		September 30, 2018		December 31, 2017
Accounts receivable	$	622,535	$	586,219
Less: Allowance for doubtful accounts		(201,000)		(140,000)
Total	$	421,535	$	446,219

We record bad debt expense when we conclude the credit risk of a customer indicates the amount due under the contract is not collectible. We recorded bad debt expense (recovery) of $(28,000) and $2,200, respectively, during the three months ended September 30, 2018 and 2017, and $82,615 and $78,700, respectively, during the nine months ended September 30, 2018 and 2017.

Our customer deposit liability had the following activity:


		Amount
December 31, 2017	$	107,370
Additional deposits received		478,274
Less: Deposits recognized as revenue		(473,262)
September 30, 2018	$	112,382

- Definition

Disclosure of accounting policy for trade and other accounts receivable, and finance, loan and lease receivables, including those classified as held for investment and held for sale. This disclosure may include (1) the basis at which such receivables are carried in the entity's statements of financial position (2) how the level of the valuation allowance for receivables is determined (3) when impairments, charge-offs or recoveries are recognized for such receivables (4) the treatment of origination fees and costs, including the amortization method for net deferred fees or costs (5) the treatment of any premiums or discounts or unearned income (6) the entity's income recognition policies for such receivables, including those that are impaired, past due or placed on nonaccrual status and (7) the treatment of foreclosures or repossessions (8) the nature and amount of any guarantees to repurchase receivables.

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