NOTE 3: RECEIVABLES

Short-term receivables consist of the following:


	(in 000s)
As of April 30,	2012		2011
Loans to franchisees	$	61,252	$	62,181
Receivables for tax preparation and related fees		42,286		38,930
Emerald Advance lines of credit		23,717		31,645
Royalties from franchisees		5,781		11,645
Tax client receivables related to RALs		648		2,412
Other		104,763		131,302
		238,447		278,115
Allowance for doubtful accounts		(44,589)		(47,943)
	$	193,858	$	230,172

The short-term portion of EAs, tax client receivables related to RALs and loans made to franchisees is included in receivables, while the long-term portion is included in other assets in the consolidated financial statements. These amounts as of April 30, 2012 and 2011 are as follows:


	(in 000s)
	Emerald Advance Lines of Credit		Tax Client Receivables - RALs		Loans to Franchisees
As of April 30, 2012:
Short-term	$	23,717	$	648	$	61,252
Long-term		13,007		4,624		109,837
	$	36,724	$	5,272	$	171,089
As of April 30, 2011:
Short-term	$	31,645	$	2,412	$	62,181
Long-term		21,619		5,855		110,420
	$	53,264	$	8,267	$	172,601

We review the credit quality of our EA receivables and tax client receivables related to RALs based on pools, which are segregated by the year of origination, with older years being deemed more unlikely to be repaid. These amounts as of April 30, 2012, by year of origination, are as follows:


	(in 000s)
	Emerald Advance Lines of Credit		Tax Client Receivables - RALs
Credit Quality Indicator—Year of origination:
2012	$	8,948	$	—
2011		6,940		—
2010		3,601		—
2009 and prior		5,150		5,272
Revolving loans		12,085		—
	$	36,724	$	5,272

As of April 30, 2012, $31.4 million of EAs were on non-accrual status and classified as impaired, or more than 60 days past due. All tax client receivables related to RALs are considered impaired.

Loans made to franchisees at April 30, 2012 totaled $171.1 million, and consisted of $127.0 million in term loans made to finance the purchase of franchises and $44.1 million in revolving lines of credit made to existing franchisees primarily for the purpose of funding their off-season needs. Loans made to franchisees totaled $172.6 million at April 30, 2011, and consisted of $125.1 million in term loans and $47.5 million in revolving lines of credit. As of April 30, 2012, loans totaling $0.3 million were past due, however we had no loans to franchisees on non-accrual status.

As discussed in note 20, we have a long-term note receivable in the amount of $54.0 million due from McGladrey & Pullen LLP (M&P) related to the sale of RSM. This note is unsecured and bears interest at a rate of 8.0%, with all principal and accrued interest due in May 2017. As of April 30, 2012, there is no allowance recorded related to this note; however, we will continue to monitor publicly available information relevant to the financial condition of M&P to assess future collectability. This note is included in other assets on the consolidated balance sheet, with a total of $55.4 million in principal and accrued interest recorded as of April 30, 2012.

Activity in the allowance for doubtful accounts for the years ended April 30, 2012, 2011 and 2010 is as follows:


	(in 000s)
	Emerald Advance Lines of Credit		Tax Client Receivables - RALs		Loans to Franchisees		All Other		Total
Balance as of May 1, 2009	$	42,875	$	14,136	$	4	$	51,700	$	108,715
Provision		33,919		12,193		—		56,811		102,923
Charge-offs		(41,555)		(14,138)		—		(64,788)		(120,481)
Balance as of April 30, 2010		35,239		12,191		4		43,723		91,157
Provision		91,546		2		—		46,391		137,939
Charge-offs		(122,385)		(12,193)		(4)		(46,571)		(181,153)
Balance as of April 30, 2011		4,400		—		—		43,543		47,943
Provision		28,057		—		—		38,605		66,662
Charge-offs		(26,257)		—		—		(43,759)		(70,016)
Balance as of April 30, 2012	$	6,200	$	—	$	—	$	38,389	$	44,589

There were no changes to our methodology related to the calculation of our allowance for doubtful accounts during fiscal year 2012.