| (8) | Accounts receivables, net of provision for doubtful accounts |
Receivables
as of December 31, 2017 and 2016 are as follows:
| December 31, 2017 |
December 31, 2016 |
|||||||
| Trade | $ | 190,501 | $ | 206,229 | ||||
| Indirect tax credits (1) | 250,663 | 184,114 | ||||||
| Manufacturer credits | 16,426 | 13,216 | ||||||
| Employee advances (2) | 6,213 | 5,138 | ||||||
| Other | 30,169 | 10,475 | ||||||
| $ | 493,972 | $ | 419,172 | |||||
| Less provision for doubtful accounts | (13,180 | ) | (13,256 | ) | ||||
| Total | $ | 480,792 | $ | 405,916 | ||||
| Net current | 340,376 | 313,868 | ||||||
| Net non–current | 140,416 | 92,048 | ||||||
| Total | $ | 480,792 | $ | 405,916 | ||||
| (1) | Corresponds mainly to: tax credit of income tax, VAT, withholding tax credits and advances of ICA, advances and prepayments income of CREE and advance payments of departure rates. |
| (2) | Employee advances mainly relate to per diem allowances provided to crew prior to traveling. |
| (3) | The increase is mainly due to the recording of the account receivable from the National Tax and Customs Administration, as a result of the financial interests not received for a payment in excess of the equity tax. In addition, a Rolls Royce bill was generated as compensation for claiming damages related to operational interruptions. |
Changes
during the year in the allowance for doubtful accounts are as follows:
| December 31, 2017 |
December 31, 2016 |
|||||||
| Balance at beginning of year | $ | 13,256 | $ | 13,314 | ||||
| Bad debt expense | 4,363 | 2,966 | ||||||
| Write–off against the allowance | (4,439 | ) | (3,024 | ) | ||||
| Balance at end of year | $ | 13,180 | $ | 13,256 | ||||
The
aging of accounts receivables at the end of the reporting period that were not impaired is as follows:
| December 31, 2017 |
December 31, 2016 |
|||||||
| Neither past due nor impaired | $ | 200,143 | $ | 184,007 | ||||
| Past due 1–30 days | 43,789 | 27,265 | ||||||
| Past due 31–90 days | 27,629 | 30,066 | ||||||
| Past due 91 days | 222,411 | 177,834 | ||||||
| Total | $ | 493,972 | $ | 419,172 | ||||
| Provision for doubtful accounts | (13,180 | ) | (13,256 | ) | ||||
| Net accounts receivable | $ | 480,792 | $ | 405,916 | ||||