Accounts receivable

12 Months Ended

Sep. 30, 2012

Accounts Receivable, Net [Abstract]

Financing Receivables [Text Block]

2. Accounts receivable

On a daily basis, the Company credit approves all orders scheduled for shipment. Customers who are over their credit limit or who have invoices that are past their due date are typically placed on credit hold until the credit problem is resolved. Credit reviews are performed on new customers. Existing customers who request an increased credit line are subject to a new credit review before increases in their credit line are approved.

The Company’s reserve for bad debt is computed using a specific identification method. On a quarterly basis the Company reviews the age and quality of its accounts receivable. The Company reserves amounts due us from companies that have gone bankrupt or companies that it evaluates are near bankrupt.

Receivables consist of:

· Trade receivables from sales to customers

· Receivables pertaining to component parts purchased from the Company by its contract manufacturers which are excluded from sales

· General services tax (GST) and value added tax (VAT) reclaimable on goods purchased by the Company’s Asian and European locations

· Allowances, consisting of sales returns and allowances and bad debt

· Other minor non trade receivables

The following is a listing by category of the Company’s accounts receivable as of September 30, 2012 and 2011.

	As of September 30,
Receivable detail:	2012			2011
Trade receivables	$	6,319,544		$	7,893,923
Allowance for doubtful accounts		(352,123	)		(423,773	)
Sales returns and allowances		(3,349,340	)		(3,761,454	)
Net trade receivables	$	2,618,081		$	3,708,696
Receivable from contract manufacturers	$	1,649,444		$	2,030,251
GST and VAT taxes receivables		287,446			298,303
Other		58,764			79,772
Total other non trade receivables	$	1,995,654		$	2,408,326