| OTHER RECEIVABLES, NET |
Note
5. OTHER RECEIVABLES, NET The
Company’s other receivables are as follows:
| | |
September 30, | | |
June 30, | |
| | |
2022 | | |
2022 | |
| Advances to customers* | |
$ | 4,052,528 | | |
$ | 3,943,547 | |
| Employee business advances | |
| 21,810 | | |
| 23,768 | |
| Total | |
| 4,074,338 | | |
| 3,967,315 | |
| Less: allowances for credit losses | |
| (4,052,528 | ) | |
| (3,942,258 | ) |
| Other receivables, net | |
$ | 21,810 | | |
$ | 25,057 | |
| * | In fiscal year 2019 and 2020, the Company entered into certain
contracts with customers (state-owned entities in China) where the Company’s services included freight costs and cost of commodities
to be shipped to customers’ designated locations. The Company prepaid the costs of commodities and recognized as advance payments
on behalf of its customers. These advance payments on behalf of the customers will be repaid to the Company when either the contract
terms expire or the contracts are terminated by either party. As aforementioned customers were negatively impacted by the pandemic and
required additional time to execute existing contracts, they required additional time to pay. Due to significant uncertainty on whether
the delayed contracts will be executed timely, the Company had provided full allowance during the fiscal year ended June 30, 2020. |
Movement
of allowance for credit losses are as follows:
| | |
September 30, | | |
June 30, | |
| | |
2022 | | |
2022 | |
| Beginning balance | |
$ | 3,942,258 | | |
$ | 6,024,266 | |
| Recovery for credit losses | |
| - | | |
| (1,934,619 | ) |
| Exchange rate effect | |
| 110,270 | | |
| (147,389 | ) |
| Ending balance | |
$ | 4,052,528 | | |
$ | 3,942,258 | |
|