4. Accounts Receivable - Net

Included in accounts receivable - net are significant offset accounts related to customer allowances earned, customer payment discrepancies, returned goods authorizations (“RGA”) issued for in-transit unit returns, estimated future credits to be provided for Used Cores returned by the customers and potential bad debts. Due to the forward looking nature and the different aging periods of certain estimated offset accounts, they may not, at any point in time, directly relate to the balances in the open trade accounts receivable.

Accounts receivable - net is comprised of the following:

	June 30, 2011			March 31, 2011
Accounts receivable - trade	$	82,279,000		$	33,066,000
Allowance for bad debts		(1,065,000	)		(1,026,000	)
Customer allowances earned		(9,196,000	)		(6,644,000	)
Customer payment discrepancies		(664,000	)		(648,000	)
Customer returns RGA issued		(17,250,000	)		(3,719,000	)
Customer core returns accruals		(19,141,000	)		(10,394,000	)
Less: total accounts receivable offset accounts		(47,316,000	)		(22,431,000	)
Total accounts receivable - net	$	34,963,000		$	10,635,000

Warranty Returns

The Company allows its customers to return goods to the Company that their end-user customers have returned to them, whether the returned item is or is not defective (warranty returns). The Company accrues an estimate of its exposure to warranty returns based on a historical analysis of the level of this type of return as a percentage of total unit sales. Amounts charged to expense for these warranty returns are considered in arriving at the Company's net sales. At June 30, 2011, the warranty return accrual of $1,968,000 was included under the customer returns RGA issued in the above table and the warranty estimate of $4,933,000 was included in customer finished goods returns accrual in the consolidated balance sheets.

Change in the Company's warranty return accrual is as follows:

	Three Months Ended June 30,
	2011			2010
Balance at beginning of period (1)	$	(8,853,000	)	$	(3,445,000	)
Charged to expense		12,732,000			8,965,000
Amounts processed		(14,684,000	)		(8,816,000	)
Balance at end of period	$	(6,901,000	)	$	(3,594,000	)

1) Includes $5,088,000 of estimated warranty return accrual established in the opening balance sheet in connection with the Company's May 6, 2011 acquisition.