This excerpt taken from the HWCC 10-K filed Mar 14, 2007.
Accounts receivable consists primarily of receivables from customers, less an allowance for doubtful accounts of $490 and $447, and a reserve for returns and allowances of $680 and $469 at December 31, 2006 and 2005, respectively. Consistent with industry practices, we
normally require payment from our customers within 30 days. The Company has no contractual repurchase arrangements with its customers. Credit losses have been within managements expectations.
The following table summarizes the changes in our allowance for doubtful accounts for the past three years (in thousands):