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3. ACCOUNTS RECEIVABLE, AND DEFERRED REVENUE | 12 Months Ended
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Dec. 31, 2017
Notes to Financial Statements |
ACCOUNTS RECEIVABLE, AND DEFERRED REVENUE | Accounts Receivable The Company records accounts receivable as it bills its customers for products and services. The allowance for doubtful accounts is based upon the Company’s policy (See Note 1). Accounts receivable throughout the year may decrease based on payments received, credits for change orders, or back charges incurred. At December 31, 2017 and 2016, accounts receivables were as follows:
|  | December 31, 2017 |  |  | December 31, 2016 |
Accounts receivable |  | $ | 5,946 |  |  | $ | 1,161,064 |
Less: Allowance for doubtful accounts |  |  | – |  |  |  | – |
Accounts receivable, Net |  | $ | 5,946 |  |  | $ | 1,161,064 |
Bad debt expense for 2017 and 2016 was $0 and $510, respectively. Deferred Revenue Deferred revenues are deposits from customers for product sales which have not yet been delivered and multi period maintenance contracts (See Note 1). Deferred revenue was $77,514 and $75,323 for the years ended December 31, 2017 and December 31, 2016, respectively.

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