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Trade Accounts and Financing Receivables | 3 Months Ended
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Dec. 31, 2021
Receivables [Abstract] |
Trade Accounts and Financing Receivables | 5. Trade Accounts and Financing Receivables Trade accounts receivable, net (excluding notes receivable) are reflected in the following table (in thousands):
|  | December 31, 2021 |  |  | September 30, 2021 |
Trade accounts receivable |  | $ | 11,151 |  |  | $ | 12,635 |
Allowance for doubtful accounts |  |  | (419 | ) |  |  | (428 | )
Total |  | $ | 10,732 |  |  | $ | 12,207 |
The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses. The Company determines the allowance based upon historical experience and a current review of its trade accounts receivable balances. Trade accounts receivable balances are charged off against the allowance whenever it is probable that the receivable balance will not be recoverable. Financing receivables are reflected in the following table (in thousands):
|  | December 31, 2021 |  |  | September 30, 2021 |
Promissory notes |  | $ | 9,132 |  |  | $ | 5,432 |
Sales-type leases |  |  | 1,481 |  |  |  | 2,464 |
Total financing receivables |  | $ | 10,613 |  |  |  | 7,896 |
Unearned income: |  |  |  |  |  |
Sales-type leases |  |  | — |  |  |  | (6 | )
Total unearned income |  |  | — |  |  |  | (6 | )
Total financing receivables, net of unearned income |  |  | 10,613 |  |  |  | 7,890 |
Less current portion |  |  | (8,507 | ) |  |  | (4,952 | )
Non-current notes receivable |  | $ | 2,106 |  |  | $ | 2,938 |
Promissory notes receivable are generally collateralized by the products sold, and bear interest at rates ranging up to 8% per year. The promissory notes receivable mature at various times through July 2023. The Company has, on occasion, extended or renewed notes receivable as they mature, but there is no obligation to do so. During the first quarter of fiscal year 2022, the Company financed a sale of OBX rental equipment by entering into a $3.7 million promissory note with a customer. The note has a term of nine months, with principal and interest payments of $0.4 million due monthly until maturity. During the third quarter of fiscal year 2021, the Company entered into a sales-type lease with a customer on land-based wireless seismic equipment from its rental fleet. The lease has a term of six months. The balance due under the lease at December 31, 2021 was $1.5 million, all of which was due and payable. Interest income related to the lease of $6,000 was recognized for the three months ended December 31, 2021. The ownership of the equipment will transfer to the customer upon the customer's payment of the outstanding balance. During the second quarter of fiscal year 2020, the Company partially financed a $12.5 million product sale by entering into a $10.0 million promissory note with the customer. The note has a three-year term with monthly principal and interest payments of $0.3 million. Due to the financial condition of the customer, the Company had concerns over the probable collectability of the promissory note. As a result, the promissory note was not reflected on the Company’s consolidated balance sheet through its first quarter of fiscal year 2021. During the second quarter of fiscal year 2021, as a result of a new information received from the customer, management determined that it was probable that the customer would satisfy its remaining payment obligations to the Company and, therefore, the Company recognized the promissory note on its consolidated balance sheet as of March 31, 2021. See Note 2 for more information on this matter.

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- Definition The entire disclosure for financing receivable. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2196816 + Details
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