Trade Accounts and Financing Receivables

3 Months Ended

Dec. 31, 2017

Trade Accounts and Financing Receivables

5. Trade Accounts and Financing Receivables

Trade accounts receivable are reflected in the following table (in thousands):

	December 31, 2017			September 30, 2017
Trade accounts receivable	$	8,265		$	10,830
Allowance for doubtful accounts		(1,254	)		(1,395	)
	$	7,011		$	9,435

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 current review of its balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable will not be recoverable.

Financing receivables are reflected in the following table (in thousands):

	December 31, 2017			September 30, 2017
Promissory notes	$	7,062		$	4,306
Sales-type lease		7,807			8,581
Total financing receivables		14,869			12,887
Unearned income:
Promissory notes		(95	)		(90	)
Sales-type lease		(444	)		(527	)
Total unearned income		(539	)		(617	)
Total financing receivables, net of unearned income		14,330			12,270
Allowance for doubtful promissory notes		(1,505	)		(1,020	)
Less current portion		(5,793	)		(3,055	)
Non-current financing receivables	$	7,032		$	8,195

During the three months ended December 31, 2017, the Company issued a $2.8 million promissory note receivable to a customer in connection with the sale of rental equipment. Cash flows from financing receivables related to the sale of rental equipment for the three months ended December 31, 2017 of $0.9 million are presented in proceeds from the sale of used rental equipment in the consolidated statements of cash flows.