XML 28 R18.htm IDEA: XBRL DOCUMENT

Note 12 - Accounts Receivable and Allowance for Credit Losses

3 Months Ended

Mar. 31, 2022

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

12 – Accounts Receivable and Allowance for Credit Losses

The Company establishes an allowance for credit losses to present the net amount of accounts receivable expected to be collected. Under Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the Company is required to remeasure expected credit losses for financial instruments held on the reporting date based on historical experience, current conditions and reasonable forecasts.

Accounts receivable consists primarily of commercial vehicle sales receivables, manufacturers’ receivables, leasing and parts and service receivables and other trade receivables. The Company maintains an allowance for credit losses based on the probability of default, its historical rate of losses, aging and current economic conditions. The Company writes off account balances when it has exhausted reasonable collection efforts and determined that the likelihood of collection is remote. These write-offs are charged against the allowance for credit losses.

The following table summarizes the changes in the allowance for credit losses (in thousands):

	Balance December 31, 2021		Provision for the Three Months Ended March 31, 2022		Write offs Against Allowance, net of Recoveries			Balance March 31, 2022

Commercial vehicle receivables	$	76	$	80	$	−		$	156
Manufacturers’ receivables		419		292		(107	)		604
Leasing, parts and service receivables		1,069		470		(409	)		1,130
Other receivables		26		−		(4	)		22
Total	$	1,590	$	842	$	(520	)	$	1,912