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ACCOUNT RECEIVABLES

6 Months Ended

Jun. 30, 2022

ACCOUNT RECEIVABLES

ACCOUNT RECEIVABLES

NOTE 8 – ACCOUNT RECEIVABLES

As of June 30, 2022, account receivables is related to the services fee receivables from customers as follow:

		June 30, 2022				December 31, 2021
Account receivables		$	761,987			$	5,627,463
Account receivables- related parties			336,020				3,603,402
		$	1,098,007			$	9,230,865

We generally receive the system service fee from customers within the first ten days of each quarter due to high volume of transaction amounts conducted through YCloud from end users.

The Company’s financial instruments that are exposed to concentrations of credit risk consist primarily of accounts receivable. The Company does not require collateral for accounts receivables. The Company maintains an allowance for its doubtful accounts receivable due to estimated credit losses. The Company records the allowance against bad debt expense through the consolidated statements of operations, included in general and administrative expense, up to the amount of revenues recognized to date. Receivables are written off and charged against the recorded allowance when the Company has exhausted collection efforts without success. As of June 30, 2022, account receivable from non-related customers are amounted to $761,987 (December 31, 2021: $5,627,463) and related parties- Changtongfu are amounted to $336,020 (December 31, 2021: $3,603,402), which are 28.6% (December 31, 2021: 64%) of total revenue. As of reporting date, all the services fee receivables has been fully settled from 4 main non-related customers and 1 related party customer- Changtongfu.