I told you guys that this bullcrap would eventually happen....SB wrote off essentially the entire A/R balance. IMO, sales that never existed in the first place.
Management believed that because of the continuing depressed economic outlook for car sales it was prudent to
establish a substantial reserve at July 31, 2020 against its accounts receivable, such that the Company’s accounts
receivable balance at July 31,2020 equaled only the amount of cash actually collected from customers between August 1
2020 and the date of this filing. Accordingly, a reserve of $ 7,315,080 was established against customer accounts
receivable balances, less $ 914,385 in sales commission thereon[/b], for a net one-time negative impact on net income of
$6,400,695.
Management believed that because of the continuing depressed economic outlook for car sales it was prudent to
establish a substantial reserve at July 31, 2020 against its accounts receivable, such that the Company’s accounts
receivable balance at July 31,2020 equaled only the amount of cash actually collected from customers between August 1
2020 and the date of this filing. Accordingly, a reserve of $ 7,315,080 was established against customer accounts
receivable balances, less $ 914,385 in sales commission thereon[/b], for a net one-time negative impact on net income of
$6,400,695.
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