Accounts Receivable and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2020

Accounts Receivable and Allowance for Credit Losses

Accounts Receivable and Allowance for Credit Losses

3.    Accounts Receivable and Allowance for Credit Losses

Accounts receivable consists of trade receivables recorded at the invoice amount, plus accrued revenue that is not yet billed, less an estimated allowance for credit losses (if any). Accounts receivable are generally due within 60 days or less, or in accordance with terms agreed with customers. We do not accrue interest on delinquent receivables. Total unbilled revenue included in accounts receivable as of June 30, 2020 and December 31, 2019 was $1,338 and $7,423, respectively.

In our determination of the allowance for credit losses, we pool receivables with similar risk characteristics and consider a number of current conditions, past events and other factors, including the length of time trade accounts receivable are past due, previous loss history, and the condition of the general economy and the industry as a whole, and apply an expected loss percentage. The expected credit loss percentage is determined using historical loss data adjusted for current conditions and forecasts of future economic conditions. Accounts deemed uncollectible are applied against

the allowance for credit losses. The related expense was included in Selling, general and administrative expense on the condensed consolidated statements of operations.

The following activity related to our allowance for credit losses on customer receivables for the six months ended June 30, 2020 reflects the estimated impact of the current economic environment on our receivable balance:

	(in thousands)
Balance, December 31, 2019	$	339
Credit losses		1,633
Less writeoffs		(896)
Balance, June 30, 2020	$	1,076

No allowance for credit losses were recognized in the six months ended June 30, 2019.