Accounts Receivable

12 Months Ended

Dec. 31, 2022

Accounts receivable consist of the following (in thousands):


	December 31,
	2022		2021
Trade accounts receivable	$	127,767	$	112,739
Allowance for credit losses	(4,110)		(3,228)
Accounts receivable, net	$	123,657	$	109,511

The Company had $13.5 million and $11.9 million of unbilled revenues accrued as of December 31, 2022 and December 31, 2021, respectively, which is included within the trade accounts receivable balance above. Unbilled revenue is generally billed in the subsequent quarter to their revenue recognition. The Company considers unbilled receivables as short-term in nature as they are normally converted to trade receivables within 90 days, thus future changes in economic conditions will not have a significant effect on the credit loss estimate.

The Company was contracted to perform inspections of welds on various pipeline projects in Texas for a customer. As of December 31, 2019, approximately $1.4 million of past due receivables were outstanding from this customer. The Company received notice from the customer in December 2019, alleging that the work performed was not in compliance with the contract. The Company filed a lawsuit to recover the $1.4 million and other amounts due to the Company and the customer filed a counterclaim, alleging breach of contract and seeking its damages. The Company recorded a full reserve for this receivable during 2019 and the status of this situation has not changed since 2019. See Note 18-Commitments and Contingencies for additional details.

During the fourth quarter of 2021, the Company wrote off approximately $5 million of past due receivables related to work performed during 2019. The Company recorded a full reserve for these receivables in the prior years.