ACCOUNTS AND NOTES RECEIVABLE

12 Months Ended

Jan. 31, 2020

ACCOUNTS AND NOTES RECEIVABLE

ACCOUNTS AND NOTES RECEIVABLE

NOTE 6 – ACCOUNTS AND NOTES RECEIVABLE

The Company generally extends credit to a customer based on an evaluation of the customer’s financial condition without requiring collateral. Exposure to losses on accounts and notes receivable is expected to differ by customer due to the varying financial condition of each customer. The Company monitors its exposure to credit losses and maintains an allowance for anticipated losses considered necessary under the circumstances based on a review of each currently outstanding account and considers its historical experience with customers having overdue amounts. As of January 31, 2020, there were outstanding invoices, with balances included in accounts receivable and contract assets in the aggregate amount of $24.5 million, for which the collection time will most likely depend on the resolution of the outstanding legal dispute between the parties (see Note 11). At January 31, 2020 and 2019, the balances of the Company’s allowance for uncollectible accounts were insignificant.

The amounts of the provision for uncollectible accounts and notes receivable were $0.2 million and $0.3 million for Fiscal 2019 and 2018, respectively, and were included in selling, general and administrative expenses for the corresponding year. The amount for Fiscal 2020 was immaterial.