On4 Communications Inc (ONCI)

[Anvil]

I provided you the FASB rule, read it. Now some instruction:

If On4 sells its app to a buyer on credit, it creates a account receivable. Usual terms are 2% net 30 as I explained previously.

If the buyer does not pay in 5 months, should On4 reserve for this account? What about 12 months late?

GAAP/FASB recommend 90 days past due to write off a receivable.

Simple A/R turnover ratio for On4 is over 12 months.

Now, what if On4 gives 12 month terms, should that be listed as a current asset?

GAAP say no.

BTW, if a tax ID number for On4 can be given, I would make a tax deductible donation