I could be way off base here, as I don't know anything about accounting, but is there a chance that their A/R would be written down due to contracts being cancelled or renegotiated?  I believe I read somewhere that they have had to renegotiate some contracts due to lower demand in the last quarter.  I think that is the more likely cause of A/R headaches, as opposed to dealing with dead beat companies. 

Anyone know if future contracts do actually get thrown in A/R?