Trade Accounts and Bills Receivable, net

6 Months Ended

Jun. 30, 2021

Trade Accounts And Bills Receivable Net [Abstract]

Trade Accounts and Bills Receivable, net

3. Trade Accounts and Bills Receivable, net

Trade accounts and bills receivable as of December 31, 2020 and June 30, 2021 consisted of the following:

	December 31,			June 30,
	2020			2021
Trade accounts receivable	$	33,305,997		$	26,356,359
Less: Allowance for doubtful accounts		(5,266,828	)		(5,064,795	)
		28,039,169			21,291,564
Bills receivable		1,532,105			894,471
	$	29,571,274		$	22,186,035

Included in trade accounts and bills receivables are retention receivables of $1,896,068 and $1,900,664 as of December 31, 2020 and June 30, 2021. Retention receivables are interest-free and recoverable either at the end of the retention period of three to five years since the sales of the EV batteries or 200,000 km since the sales of the motor vehicles (whichever comes first).

An analysis of the allowance for doubtful accounts is as follows:

	June 30,			June 30,
	2020			2021
Balance at beginning of period	$	4,650,686		$	5,266,828
Provision for the period		968,627			-
Reversal - recoveries by cash		(540,925	)		(258,578	)
Charged to consolidated statements of operations and comprehensive (loss) income		427,702			(258,578	)
Foreign exchange adjustment		(69,158	)		56,545
Balance at end of period	$	5,009,230		$	5,064,795