XML 66 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTE 4 - ACCOUNTS RECEIVABLE
 12 Months Ended
Feb. 03, 2013
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
NOTE 4 – ACCOUNTS RECEIVABLE

   
February 3,
   
January 29,
 
   
2013
   
2012
 
             
Trade accounts receivable
  $ 22,712     $ 21,261  
Receivable from factor
    6,809       6,178  
Allowance for doubtful accounts
    (1,249 )     (1,632 )
   Accounts receivable
  $ 28,272     $ 25,807  

“Receivable from factor” represents amounts due with respect to factored accounts receivable. We factor substantially all of our domestic upholstery accounts receivable, in most cases without recourse to us.

Under our factoring agreement, invoices for domestic upholstery products are generated and transmitted to our customers, with copies to the factor on a daily basis, as products are shipped to our customers.  The factor collects the amounts due and remits collected funds, less factoring fees, to us semi-weekly. We retain ownership of the accounts receivable until the invoices are 90 days past due. At that time, the factor pays us the net invoice amount, less factoring fees, and takes ownership of the accounts receivable. The factor is then entitled to collect the invoices on its own behalf and retain any subsequent remittances. The invoiced amounts are reported as accounts receivable on our consolidated balance sheets, generally when title to the merchandise passes to our customer  until payment is received from the factor.

A limited number of domestic upholstery accounts receivable are factored with recourse to us. The amounts of these receivables at February 3, 2013 and January 29, 2012 were $58,000 and $135,000, respectively. If the factor is unable to collect the amounts due, invoices are returned to us for collection. We include an estimate of potentially uncollectible amounts for these receivables in our calculation of our allowance for doubtful accounts.