ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 6 – ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

Accounts receivable - net consists of:

	September 30, 2018			December 31, 2017
Accounts receivable	$	12,095,000		$	10,199,000
Allowance for doubtful accounts, sales discounts and chargebacks		(394,000	)		(152,000	)
	$	11,701,000		$	10,047,000

Florida Pneumatic agreed to contribute $1,000,000 to The Home Depot (“THD”). This contribution is consideration payable to a customer. This contribution will be in the form of deductions taken by THD from its remittances to the Company. We anticipate that these deductions will occur during the fourth quarter of 2018. Accordingly, accounts receivable is reduced to reflect the $1 million contribution to THD. As this contribution will benefit future periods, a portion is accounted for as Prepaid expenses and other current assets, with the balance in Other assets. This contribution is being amortized over a four year period, which approximates historical time-frames for similar contributions beginning August 2018, the period in which the Company shipped a new line of products to THD.