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    MsMCY's Avatar
    MsMCY Posts: 3, Reputation: 1
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    #1

    Dec 13, 2010, 08:25 PM
    Aging Method
    I need help on how to use the aging method to do my accounting homework. Can anyone help me?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Dec 13, 2010, 08:46 PM

    Aging is done for both accounts receivable and accounts payable. You will have a spreadsheet with columns for total amount, current, 31-60 days, 61-90 days, and over 90 days. The spreadsheet will list each vendor if payables or customer if receivables. The total amount is listed, and then spread based on how long they have been outstanding.

    If you are looking at using this for determining allowance for doubtful accounts, they probably gave you some kind of formula to apply to the different columns.
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