FAF3
Syllabus D. Recording Transactions And Events D8. Receivables and payables

D8c. Aged receivables analysis 2 / 7

Syllabus D8c)

Understand the purpose of an aged receivables analysis.

The Accounts Receivable Aging

A tool to control these problems of providing credit facilities is the aged receivables analysis.

All outstanding accounts receivable are compiled into the accounts receivable aging report

This shows how long invoices have been outstanding, current, 30 days, 60 days, 90 and 90+ days, and may also indicate that a customer is unable to pay.

Most credit controllers will have a system of chasing up payment for long outstanding invoices.