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Note 5 - Accounts Receivable
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6 Months Ended |
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Mar. 31, 2014
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| Receivables [Abstract] | |
| Financing Receivables [Text Block] |
Note 5. Accounts Receivable and Net Sales
Credit is extended based on the evaluation of a customer’s financial condition and collateral is generally not required. Accounts that are outstanding longer than the contractual payment terms are considered past due. The Company writes off accounts receivable when they become uncollectible; payments subsequently received on such receivables are credited to the allowance for doubtful accounts. As of both March 31, 2014 and September 30, 2013, the balance in the allowance for doubtful accounts was $97,950.
The Company has rebate agreements with customers that expire at various times and as of March 31, 2014 has accrued rebates of $2,776,689 related to these agreements. These agreements have a right of offset against accounts receivable balances for these customers, and after offsetting, the Company has recorded an accrued rebate liability of $2,659,764 as of March 31, 2014. All amounts related to these rebate agreements are recorded as a reduction of sales and were $11,345 and $1,385,329 for the three and six months ended March 31, 2014, respectively, and $378,842 and $429,652 for the three and six months ended March 31, 2013, respectively.
See Note 7, “Major Customer Concentration” for further information regarding accounts receivable and net sales.
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