NOTE 6 – CUSTOMER ALLOWANCES AND DISCOUNTS

In the normal course of business, the Corporation enters into agreements with certain customers for the supply of greeting cards and related products. The agreements are negotiated individually to meet competitive situations and, therefore, while some aspects of the agreements may be similar, important contractual terms may vary. Under these agreements, the customer may receive allowances and discounts including rebates, marketing allowances and various other allowances and discounts. These amounts are recorded as reductions of gross accounts receivable or included in accrued liabilities and are recognized as reductions of net sales when earned. These amounts are earned by the customer as product is purchased from the Corporation and are recorded based on the terms of individual customer contracts.

Trade accounts receivable are reported net of certain allowances and discounts. The most significant of these are as follows:


	February 28, 2015		February 28, 2014
Allowance for seasonal sales returns	$	18,895	$	26,613
Allowance for outdated products		11,074		9,692
Allowance for doubtful accounts		1,730		2,488
Allowance for marketing funds		26,841		28,277
Allowance for rebates		34,214		27,369

	$	92,754	$	94,439

Certain customer allowances and discounts are settled in cash. These accounts, primarily rebates, which are classified as “Accrued liabilities” on the Consolidated Statement of Financial Position, totaled $16,951 and $16,453 as of February 28, 2015 and 2014, respectively.