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    terickson1's Avatar
    terickson1 Posts: 1, Reputation: 1
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    #1

    Apr 7, 2010, 05:19 PM
    What is the aging-of-receivables method
    What is the aging-of-receivables method in financial accounting?
    Please explain in easiest terms possible. Thank you
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Apr 7, 2010, 10:15 PM

    The aging of receivables method
    Is a simple method of classification.
    We adopt a simple counting of
    30,60 and 90 days and over from the receivable becomes present.
    One should give more effort to collect the 90 days and over.
    If there is an overdraft in the firm,
    This becomes helpful in alleviating interest payments.
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