Accounts Receivable

9 Months Ended

Sep. 30, 2020

Our accounts receivable balance consists of the following as of September 30, 2020 and December 31, 2019:


	September 30,		December 31,
	2020		2019
Accounts receivable	$	248,382	$	350,369
Less: Accounts receivable allowance	(9,744)		(16,511)
Accounts receivable, net	$	238,638	$	333,858

The Company estimates credit losses for trade receivables by aggregating similar customer types together, because they tend to share similar credit risk characteristics, taking into consideration the number of days the receivable is past due. Provision rates for the allowance for doubtful accounts are based upon the historical loss method by evaluating factors such as the length of time receivables that are past due and historical collection experience. Additionally, provision rates are based upon current and future economic and competitive environment factors that could impact the collectability of the receivable. Trade and other receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include past due status greater than 360 days or bankruptcy of the debtor. The activity in our accounts receivable allowance consists of the following:


Balance as of June 30, 2020	$	11,074
Write-offs	(2,675)
Additional provisions	1,043

Exchange differences	302
Balance as of September 30, 2020	$	9,744

Balance as of December 31, 2019	$	16,511
Opening balance sheet adjustment related to ASU 2016 -13 adoption	10,097
Write-offs	(18,614)
Additional provisions	1,830

Exchange differences	(80)
Balance as of September 30, 2020	$	9,744

The potential for credit losses is mitigated because customer creditworthiness is evaluated before credit is extended.

The Company recorded write-offs against the reserve of $2,675, $18,614 and 2,321 for the three and nine months ended September 30, 2020, and the year ended 2019, respectively.

We are monitoring the impacts from the COVID-19 pandemic on our customers and various counterparties. During the three and nine months ended September 30, 2020, the Company’s allowance for doubtful accounts and credit losses considered additional risk related to the pandemic. However, this risk to-date was not considered material.