Accounts Receivable, Net of Allowance for Doubtful Accounts

6 Months Ended

Jun. 30, 2024

Accounts Receivable, Net of Allowance For Doubtful Accounts

3. Accounts Receivable, Net of Allowance for Doubtful Accounts

Our receivables, which are recorded when billed or when services are performed, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. We estimate our allowance for doubtful accounts based on consideration of a number of factors, including the length of time trade accounts are past due, our previous loss history, the creditworthiness of individual customers, economic conditions

affecting specific customer industries, and economic conditions in general. We write off past-due receivable balances after all reasonable collection efforts have been exhausted. We credit payments subsequently received on such receivables to bad debt expense in the period we receive the payment.

The following table reflects the activity in our allowance for doubtful accounts of trade receivables for the three and six months ended June 30, 2024 and 2023:


	Three Months Ended June 30,						Six Months Ended June 30,
	2024			2023			2024			2023
	(Unaudited)						(Unaudited)
Beginning balance	$	1,958,062		$	2,274,540		$	1,581,595		$	2,176,010
Bad debt expense		5,138			326,450			573,813			570,359
Uncollectible accounts written off, net of recoveries		(74,893	)		(505,043	)		(267,101	)		(650,422	)
Ending balance	$	1,888,307		$	2,095,947		$	1,888,307		$	2,095,947