This excerpt taken from the APH 8-K filed Feb 14, 2006.
Accounts Receivable and Allowance for Doubtful Accounts
Trade accounts receivable are recorded at the invoiced amount and do not bear interest. The volatility of the industries that Connection Systems serves can cause certain of its customers to experience shortages of cash flows, which can impact their ability to make required payments. Connection Systems maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. Estimated allowances for doubtful accounts are reviewed periodically, taking into account the customers current payment history, the customers current financial statements and other information regarding the customers credit worthiness. If the financial condition of Connection Systems customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. Account balances are charged off against the allowance when it is probable the receivable will not be recovered.