Note 4. Receivables
Accounts receivable is net of an allowance for doubtful accounts
of $40 million and $35 million at June 30, 1997 and 1996, respectively.
The Company finances the sale of computer systems to certain of
its clients. These finance receivables, substantially all of which
are due from automobile and truck dealerships, are reflected in
the consolidated balance sheets as follows:
| (In Thousands) | ||||
| June 30, | ||||
| Receivables | ||||
| Less: | ||||
| Allowance for doubtful accounts | ||||
| Unearned income | ||||
Unearned income from finance receivables represents the excess
of gross receivables over the sales price of the computer systems
financed. Unearned income is amortized using the interest method
to maintain a constant rate of return on the net investment over
the term of each contract.
Long-term receivables at June 30, 1997 mature as follows:
(In thousands)
| 1999 | |
| 2000 | |
| 2001 | |
| 2002 | |
| Thereafter | |