Note 3 - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure [Text Block]

3

. VALUATION

AND QUALIFYING ACCOUNTS

● Allowance for uncollectible accounts

We maintain allowances for bad debts based on factors such as the composition of accounts receivable, the age of the accounts, historical bad debt experience, and our evaluation of the financial condition and past collection history of each customer. Write-offs have historically

not

been material, but receivables are evaluated for write off as they are deemed uncollectible based on a periodic review of accounts. Our allowance for doubtful accounts was approximately

$15,700

and

$22,600

at

December 31, 2018

and

2017,

respectively.

● Sales returns and defective merchandise

Product returns are generally recorded directly against sales as those returns occur. At

December 31, 2018,

we have established a sales return reserve of

$184,000

based on historical customer return behavior, included in Accrued Expenses and Other Liabilities, while an estimated value of the merchandise expected to be returned of

$111,000

has been included in Inventory in the accompanying Consolidated Balance Sheet.