Accounts Receivable, Net

6 Months Ended

Jun. 30, 2020

Note 3. Accounts Receivable, Net

Accounts receivable, less the allowance for doubtful accounts, represents the net amount expected to be collected. Assessing the collectability of the receivables (billed and unbilled) requires management judgment based on a combination of factors, including but not limited to, an evaluation of our historical incurred loss experience, credit-worthiness of our clients, age of the trade receivable balance, current economic conditions that may affect a client’s ability to pay, and reasonable and supportable forecasts. Receivables are charged-off against the allowance when the balance is deemed uncollectible.

We considered the impact of the COVID-19 pandemic, the resulting macroeconomic conditions, client’s location, industry, and financial position in our estimation of the allowance for doubtful accounts. During the three and six month periods ended June 30, 2020, we recorded bad debt expense due to the COVID-19 pandemic of $0.2 million and $2.2 million, respectively.

Accounts receivable, net, at June 30, 2020 and December 31, 2019 were as follows (in thousands):

	June 30,			December 31,
	2020			2019
Trade accounts receivable	$	197,725		$	176,375
Unbilled revenue, at net realizable value		85,845			60,035
Total accounts receivable		283,570			236,410
Allowance for doubtful accounts		(16,372	)		(14,379	)
Accounts receivable, net	$	267,198		$	222,031

Changes to the allowance for doubtful accounts for the six months ended June 30, 2020 are as follows (in thousands):

	June 30,
	2020
Balance at beginning of period	$	(14,379	)
Provision for losses		(4,982	)
Charge-offs, net of recoveries		2,989
Allowance for doubtful accounts	$	(16,372	)