ACCOUNTS PAYABLE AND ACCRUED EXPENSES

12 Months Ended

Dec. 31, 2013

7. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consisted of the following at December 31, 2013 and December 31, 2012:

	2013		2012
Trade payables	$	14,619,000	$	16,226,000
Sales commissions payable		5,535,000		5,549,000
Sales tax payable		1,335,000		3,295,000
Accrued MWCC center closure costs		1,361,000		-
Accrued payroll and related taxes		3,930,000		3,151,000
	$	26,780,000	$	28,221,000

The focus of sales tax on internet based remote sellers has gained momentum in many states in 2012. Because of this, combined with the desire of the Company to create symmetry among all sales channels, the Company re-aligned its sales tax position in 2012 to be more consistent with the Company’s state income tax restructurings discussed in Note 10 and mitigated any risk of noncompliance with state jurisdictions. In 2013, the Company commenced collecting and remitting sales tax in all states that impose sales or use taxes and filed voluntary disclosure agreements with various states for 2012 and prior sales tax exposures. The 2012 total amount of sales tax liability estimated relating to such disclosure agreements was estimated at $3.3 million. The accrued sales tax liability is a result of varying application of statutes, rules, regulations and interpretations.