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ACCOUNTS RECEIVABLE, NET
 9 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
ACCOUNTS RECEIVABLE, NET

NOTE 3 — ACCOUNTS RECEIVABLE, NET

 

Accounts receivable consist of the following:

  

   September 30, 2024   December 31, 2023 
Accounts receivable – third parties  $12,273,560   $10,123,805 
Less: allowance for credit loss   (715,827)   (557,360)
Accounts receivable, net  $11,557,733   $9,566,445 

 

The Company recorded a reversal of allowance for credit loss of $27,779 and $174,231 for the three months ended September 30, 2024 and 2023, respectively. The Company recorded an allowance for credit loss of $223,051 and a reversal of allowance for credit loss $118,144 for the nine months ended September 30, 2024 and 2023, respectively. The Company wrote off uncollectible accounts receivable of $64,584 and $64,584 against allowance for credit loss account for the three and nine months ended September 30, 2024, respectively. The Company wrote off uncollectible accounts receivable of $420,967 and $420,967 in general and administrative expense from customer for the three and nine months ended September 30, 2023, respectively.

 

The movement of allowance for credit loss are as follow:

 

   September 30, 2024   December 31, 2023 
Balance as of beginning  $557,360   $354,059 
Written off   (64,584)   - 
Additional of provision   223,051    203,301 
Ending balance  $715,827   $557,360 

 

The Company’s accounts receivable balances as of September 30, 2024 and December 31, 2023 are pledged for its line of credit facility at Midfirst Bank and Cathay Bank (See Note 12).