definiens: shall mean, with respect to a particular Subject Product, the actual gross amount invoiced by BGM or its Affiliates for commercial sales of such Subject Product after deducting, in accordance with GAAP, the following : ( i ) trade, cash and quantity discounts reasonably consistent with industry standards ; ( ii ) credits or allowances for damaged or spoiled product, returns, recalls or rejections of products, including allowance for breakage or spoilage ; ( iii ) sales, value added, excise or other direct taxes, and freight, postage, shipping and transportation insurance charges and additional transportation, custom duties, and other governmental charges on the Subject Product ; ( iv ) chargebacks, rebates or similar payments or credits directly related to the Subject Product consistent with reasonable industry standards granted to managed health care organizations, wholesalers, distributors, buying groups, retailers, health care insurance carriers, pharmacy benefit management companies, health maintenance organizations or other institutions or health care organizations or to federal, state / provincial, local and other governments, their agenCIes and purchasers and reimbursers ; and ( v ) . any bad debts, which shall mean accounts receivable of BGM and its Affiliates arising from the aforesaid sales of Subject Products which have not been paid within 120 days after the due date and which BGM has made commercially reasonable efforts to collect upon ; provided, however, that if any bad debt is subsequently collected, then, and in such event, the amount thereafter collected on account of such bad debt shall, upon collection, be included in BGM 's Net Sales for the period collected