Accounts Receivable - Net

3 Months Ended

Jun. 30, 2021

Accounts Receivable - Net [Abstract]

Accounts Receivable - Net

3. Accounts Receivable — Net

The Company has trade accounts receivable that result from the sale of goods and services. Accounts receivable — net includes offset accounts related to allowances for credit losses, customer payment discrepancies, and returned goods authorizations (“RGAs”) issued for in-transit unit returns. The Company believes its credit risk with respect to trade accounts receivable is limited due to its credit evaluation process and the long-term nature of its relationships with its largest customers. The Company utilizes a historical loss rate method, adjusted for any changes in economic conditions or risk characteristics, to estimate its expected credit losses each period. When developing an estimate of expected credit losses, the Company considers all available relevant information regarding the collectability of cash flows, including historical information, current conditions, and reasonable and supportable forecasts of future economic conditions over the contractual life of the receivable. The historical loss rate method considers past write-offs of trade accounts receivable over a period commensurate with the initial term of the Company’s contracts with its customers. The Company recognizes the allowance for credit losses at inception and reassesses quarterly based on management’s expectation of the asset’s collectability. The Company’s accounts receivable are short-term in nature and written off only when all collection attempts have failed. The Company uses receivable discount programs with certain customers and their respective banks (see Note 10).

Accounts receivable — net is comprised of the following:

	June 30, 2021			March 31, 2021
Accounts receivable — trade	$	67,212,000		$	81,549,000
Allowance for credit losses		(273,000	)		(348,000	)
Customer payment discrepancies		(797,000	)		(752,000	)
Customer returns RGA issued		(12,123,000	)		(17,327,000	)
Total accounts receivable — net	$	54,019,000		$	63,122,000

The following table provides a roll-forward of the allowance for credit losses that is deducted from accounts receivable to present the net amount expected to be collected. During the three months ended June 30, 2020, the Company wrote off amounts previously fully reserved for in connection with the bankruptcy filing of one of its customers.

	Three Months Ended June 30,
	2021			2020
Balance at beginning of period	$	348,000		$	4,252,000
Provision for expected credit losses		(36,000	)		170,000
Recoveries		-			(100,000	)
Amounts written off charged against the allowance		(39,000	)		(3,897,000	)
Balance at end of period	$	273,000		$	425,000