4. ACCOUNTS RECEIVABLE

6 Months Ended

Jun. 30, 2012

NOTE 4 – ACCOUNTS RECEIVABLE

Accounts receivable consist of the following:

	June 30,			December 31,
	2012			2011
Accounts receivable	$	64,569,157		$	69,551,171
Allowance for doubtful accounts		(17,582,516	)		(16,354,873	)
Accounts receivable, net	$	46,986,641		$	53,196,298

Accounts receivable arise from sales to our customers and are generally due on terms ranging from 30 to 180 days beginning after the invoice date. The Company assessed distributors’ credit history, operation performance, financial position, and reputation among peers to assign credit terms. The Company’s management reviews credit terms and conditions of the account receivable balance for each distributor on a quarterly basis. The Company estimates that the remaining net receivables will be collected.

From time to time we receive bank acceptance notes that are payable to the Company from our customers, for goods we sell to those customers. If the notes are not yet due and payable, we may exchange them at a bank in exchange for notes payable to our suppliers, and deliver those notes to our vendors.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References+ Details

AMERICAN ORIENTAL BIOENGINEERING INC 10-Q