- classification of trade accounts receivable by date of sale usually prepared by a company’s auditor the Aging as the schedule is called is a vital tool in analyzing the quality of a company’s receivables investment it is frequently required by granted tours of credit the schedule is most often seen as
- 1 a list of the amount of receivables by the month in which they are created
- into a list of receivables by maturity classified as current or as being in various stages of delinquency
- the Aging schedule reveals patterns of delinquency and shows where collection efforts should be concentrated it helps in evaluating the adequacy of the reserve for bad debts because the longer account stretch out the more likely they are to become uncollectible using a schedule can help prevent the loss of future sales since old customers will fall to behind tend to seek out new sources of supply
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