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Accounts Receivable, Net

12 Months Ended

Dec. 31, 2023

NOTE 7 — ACCOUNTS RECEIVABLE, NET

Accounts receivable, net consisted of the following:

	As of December 31,
	2023			2022
Accounts receivable	$	3,283,118		$	2,916,609
Accounts receivable – related parties		1,094,225			272,546
Less: allowance for expected credit losses		(312,482	)		(94,447	)
Accounts receivable, net	$	4,064,861		$	3,094,708

The accounts receivable due from related parties represented the management service rendered to the portfolio assets of related companies, which are controlled by the holding company, for a compensation of asset management service fee income at the predetermined rate based on the respective portfolio of asset values invested by the final customers. The amount is unsecured, interest-free and with a credit term mutually agreed.

The following table presents the activity in the allowance for expected credit losses:

	As of December 31,
	2023		2022
Balance at beginning of year	$	94,447	$	94,576
Allowance for expected credit losses		217,475		—
Foreign translation adjustment		560		(129	)
Balance at end of year	$	312,482	$	94,447

The Company generally conducts its business with creditworthy third parties. The Company determines, on a quarterly basis, the probable losses and an allowance for expected credit losses determined in accordance with the CECL model, based on historical losses, current economic conditions, forecasted future economic and market considerations, and in some cases, evaluating specific customer accounts for risk of loss. Accounts receivable are written off after exhaustive collection efforts occur and the receivable is deemed uncollectible. In addition, receivable balances are monitored on an ongoing basis and its exposure to bad debts is not significant.

For the years ended December 31, 2023 and 2022, the Company has assessed the probable loss and made an allowance for expected credit losses of $217,475 and nil on accounts receivable, respectively.