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2. Summary of Significant Accounting Policies: Accounts Receivable (Policies)
5 Months Ended
May. 31, 2015
Policies  
Accounts Receivable

Accounts Receivable  

 

Accounts receivable are recorded at the contract amount after deduction of trade discounts and allowances, if any, and do not bear interest.  The allowance for doubtful accounts, when necessary, is the Company’s best estimate of the amount of probable credit losses of accounts receivable. The Company determines the allowance based on historical write-off experience, customer specific facts and economic conditions.

 

Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.  The Company does not have any off-balance-sheet credit exposure related to its customers. 

 

The Company required a 30% advance from customers through December 31, 2014. Commencing in January 2015, an advance from customers is no longer required.  As of May 31, 2015 and November 30, 2014, accounts receivable was $222,905 and $0, respectively.