NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (CONT’D) NOTE 8  Inventories NOTE 9  Accounts receivable HIGH LINER FOODS INCORPORATED 76 Accounts receivable have increased due to the American Pride Acquisition  (note 4) . Accounts receivable bear normal commercial credit terms, usually 30 days or less, and are non-interest bearing. The entire accounts  receivable balance is pledged as collateral for the Company’s working capital facility. The value of inventory subject to a reserve was $8.8 million (December 29, 2012: $2.4 million). Inventory and reserves have increased due to  the American Pride Acquisition  (note 4) . (1) Headless and gutted  Expenses recognized in cost of sales for inventories during the year are comprised of the following: Total inventories at the lower of cost and net realizable value on the statement of financial position are comprised of the following: December 28, December 29, (Amounts in $000s) 2013  2012 Finished goods – procured $ 76,396 $ 78,116 Finished goods – manufactured 78,515 70,762 Raw and semi-finished material 69,353 43,517 Supplies, repair parts and other  10,092 14,868 H&G (1) , including H&G paid in advance  13,357 7,170 Inventory in transit, paid in advance  6,359 8,376 254,072 222,809 Less: inventories held for sale  (note 7) — (496) $ 254,072 $ 222,313 December 28, December 29,  (Amounts in $000s) 2013 2012 Inventory costs recognized as an expense during the year  $ 730,908 $ 737,459 Write-down of inventories recognized as an expense, during the year:  Inventory reserves utilized (2,473) (1,825) New inventory reserves created  5,257 1,056 Unused inventory reserves reversed  (1,808) (720) Total expenses recognized as cost of sales during the year  $ 731,884 $ 735,970 December 28, December 29,  (Amounts in $000s) 2013  2012 Trade accounts receivable $ 84,787 $ 73,171 Other accounts receivable 6,547 926 91,334 74,097 Less: accounts receivable held for sale  (note 7) — (150) $ 91,334 $ 73,947