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Note 8 - Accounting for Financial Instruments - Credit Losses
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Credit Loss, Financial Instrument [Text Block]

8.

Accounting for Financial Instruments – Credit Losses

 

The Company recognizes an allowance for credit losses for its trade receivables to present the net amount expected to be collected as of the balance sheet date. This allowance is based on the credit losses expected to arise over the life of the asset and are based on Current Expected Credit Losses (CECL).

 

The timing between recognition of revenue for product sales and the receipt of payment is not significant. The Company’s standard credit terms, which vary depending on the customer, range between 30 and 60 days. The Company provides allowances for any receivables for which collection is doubtful in accordance with ASU 2016-13. As of September 30, 2024 and December 31, 2023, the allowance for credit losses on accounts receivable was $19,174 and $16,672, respectively. Prompt-pay discounts are offered to some customers; however, due to the uncertainty of the customers taking the discounts, the discounts are recorded only after they have been taken.