GEOSPACE TECHNOLOGIES CORP | 2012 | FY | 3


7. Accounts and Notes Receivable:

The Company’s current trade accounts receivable consisted of the following (in thousands):

 

                 
    AS OF
SEPTEMBER 30,
 
    2012     2011  

Trade accounts receivable

  $ 16,509     $ 20,172  

Allowance for doubtful accounts

    (280     (411
   

 

 

   

 

 

 
    $ 16,229     $ 19,761  
   

 

 

   

 

 

 

 

The allowance for doubtful accounts represents the Company’s best estimate of probable credit losses. The Company determines the allowance based upon historical experience and a review of its balances. Accounts receivable balances are charged off against the allowance whenever it is probable that the receivable will not be recoverable. The Company does not have any off-balance-sheet credit exposure related to its customers.

Notes receivable are reflected in the following table (in thousands):

 

                 
    September 30,
2012
    September 30,
2011
 

Notes receivable

  $ 5,493     $ 5,806  

Allowance for doubtful notes

    —         —    
   

 

 

   

 

 

 
      5,493       5,806  

Less current portion

    3,806       2,100  
   

 

 

   

 

 

 
    $ 1,687     $ 3,706  
   

 

 

   

 

 

 

Notes receivable are generally collateralized by the products sold, and bear interest at rates ranging up to 11.0% per year. The notes receivable of $5.5 million will be mature at various times through December 2015. The Company has, on occasion, extended or renewed notes receivable as they mature, but there is no obligation to do so.


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