Accounts Receivable

9 Months Ended

Sep. 30, 2021

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Our accounts receivable balance consists of the following as of September 30, 2021 and December 31, 2020:

	September 30,		December 31,
	2021		2020
Accounts receivable	$	619,397	$	746,478
Less: Accounts receivable allowance	(8,642)		(8,745)
Accounts receivable, net	$	610,755	$	737,733

The Company estimates credit losses for trade receivables by aggregating similar customer types together, because they tend to share similar credit risk characteristics, taking into consideration the number of days the receivable is past due. Provision rates for the allowance for doubtful accounts are based upon the historical loss method by evaluating factors such as the length of time receivables that are past due and historical collection experience. Additionally, provision rates are based upon current and future economic and competitive environment factors that could impact the collectability of the receivable. Trade and other receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include past due status greater than 360 days or bankruptcy of the debtor. The activity in our accounts receivable allowance consists of the following for the nine months ended September 30, 2021 and year ended December 31, 2020, respectively:

	September 30,		December 31,
	2021		2020
Balance at beginning of year	$	8,745	$	16,511
Additional provisions	6,532		4,339
Write-offs	(6,405)		(22,205)
Opening balance sheet adjustment related to ASU 2016 -13 adoption	—		10,097
Exchange differences	(230)		3
Balance at the end of year	$	8,642	$	8,745

The potential for credit losses is mitigated because customer creditworthiness is evaluated before credit is extended.

The Company recorded write-offs against the reserve of $6,405 and $22,205 for the nine months ended September 30, 2021 and year ended December 31, 2020, respectively.

We continue to monitor any impacts from the COVID-19 pandemic on our customers and various counterparties. During the nine months ended September 30, 2021 and year ended December 31, 2020, the Company’s allowance for doubtful accounts and credit losses considered additional risk related to the pandemic. However, this risk to-date was not considered material.