Note 2 - Summary of significant accounting policies: Investment in account receivable, net of discount (Policies)
|12 Months Ended|
Dec. 31, 2020
|Investment in account receivable, net of discount||
Investment in account receivable, net of discount
The Companys investment in account receivable is stated at face value, net of unamortized purchase discount. The discount is amortized to interest income over the term of the exchange agreement. In the fourth quarter of 2020, we were notified that due to the effect of COVID-19 on the estimated receivable, we may not receive the 2020 installment payment or the full 2021 installment. Based on managements collection estimates, we recorded an impairment of $139,148 on the investment in account receivable at December 31, 2020 which is reflected in other income on the consolidated income statement. See Note 4.
Disclosure of accounting policy for determining the allowance for doubtful accounts for trade and other accounts receivable balances, and when impairments, charge-offs or recoveries are recognized.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef