Accounts and Notes Receivable

12 Months Ended

Sep. 30, 2015

8. Accounts and Notes Receivable

The Company’s current trade accounts receivable consisted of the following (in thousands):

	AS OF SEPTEMBER 30,
	2015			2014
Trade accounts receivable	$	15,209		$	25,727
Allowance for doubtful accounts		(2,516	)		(1,125	)
	$	12,693		$	24,602

The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses. The Company determines the allowance based upon historical experience and a review of its balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable will not be recoverable. The Company does not have any off-balance-sheet credit exposure related to its customers.

Notes receivable are reflected in the following table (in thousands):

	SEPTEMBER 30, 2015		SEPTEMBER 30, 2014
Notes receivable	$	3,520	$	3,814
Allowance for doubtful notes		—		—
		3,520		3,814
Less current portion		2,004		3,786
Non-current notes receivable	$	1,516	$	28

Notes receivable are generally collateralized by the products sold, and bear interest at rates ranging up to 8.8% per year. The notes receivable of $3.5 million will mature at various times through January 2018. The Company has, on occasion, extended or renewed notes receivable as they mature, but there is no obligation to do so.