Several steps:

1. Make sure the data in the database is inserted as utf8 so it'll be readable.
In includes/db/connect_db.inc:
In function set_global_connection() line #13 before returning $db:
+ mysql_set_charset("utf8", $db);

2. In order to get rid of all the HTML entities.
In reporting/includes/pdf_report.inc:

In function Text() line #732 at first line of the fubction:
+ $txt = html_entity_decode($txt);

In function function TextWrap() about line #743, after $str = strtr($str array("\r"=>''));
+ $str = html_entity_decode($str);

In function End() about line #953:

In about line #953:
- $mail = new email(str_replace(",", "", $this->company['coy_name']),
              $this->company['email']);

+ $mail = new email(str_replace(",", "", html_entity_decode($this->company['coy_name'])),
              $this->company['email']);
             
In about line #1036:         

- $sender = $this->user . "\n" . $this->company['coy_name'] . "\n" . $this->company['postal_address'] . "\n" . $this->company['email'] . "\n" . $this->company['phone'];

+ $sender = html_entity_decode($this->user) . "\n" . html_entity_decode($this->company['coy_name']) . "\n" . html_entity_decode($this->company['postal_address']) . "\n" . $this->company['email'] . "\n" . html_entity_decode($this->company['phone']);

I hope it'll help.

Thanks.
I solved it by alternating some code in pdf_report.inc, using  html_entity_decode

Yes I was afraid that this will be the sole solution.
Any available script to do the job?

The way fa insets/updates data in the database is by replacing special characters with their HTML entities equivalents, for example:
& will be converted to &
> will be converted to >
" will be converted to "
The problem is that when the data containing these html entities is pulled from the database for reporting, the output pdf file is using these HTML entities and not the original characters.
Every single quote is becoming ' so for example the item description: a package of 100' hose becomes: package of 100' hose.
any ideas hoe this can be solved?
I'm using version 2.3.25