3. CONTRACT ACCOUNTING AND ACCOUNTS RECEIVABLE

12 Months Ended

Dec. 31, 2013

Receivables [Abstract]

NOTE 3. CONTRACT ACCOUNTING AND ACCOUNTS RECEIVABLE

Billings in excess of costs and estimated earnings on uncompleted contracts represents billings and/or cash received that exceed accumulated revenues recognized on uncompleted contracts accounted for under the percentage of completion contract method (See Note 1).

At December 31, 2013, billings in excess of costs and estimated earnings on uncompleted contracts consisted of the following for contracts accounted for using the percentage of completion method of accounting:

Billings and/or cash receipts on uncompleted contract	$	166,334
Less: Revenues recognized		(3,205	)
Billings in excess of costs and estimated earnings on uncompleted contracts	$	163,129

At December 31, 2012, billings in excess of costs and estimated earnings on uncompleted contracts consisted of the following for contracts accounted for using the percentage of completion method of accounting:

Billings and/or cash receipts on uncompleted contract	$	60,000
Less: Revenues recognized		(33,162	)
Billings in excess of costs and estimated earnings on uncompleted contracts	$	26,838

The Company records accounts receivable related to its construction contracts and its design services based on billings or on amounts due under the contractual terms. The allowance for doubtful accounts is based upon the Company’s policy. Accounts receivable throughout the year may decrease based on payments received, credits for change orders, or back charges incurred.

At December 31, 2013 and 2012, accounts receivable were as follows:

	December 31, 2013			December 31, 2012
Accounts receivable	$	191,159		$	342,770
Less: Allowance for doubtful accounts		(11,700	)		(13,254	)
Accounts receivable, Net	$	179,459		$	329,516

Bad debt expense (recovery) for 2013 and 2012 was $11,700 and ($14,488), respectively.