Aging of accounts receivable

Aging of account receivable or debtors is the division or classification of accounts receivable or debtors on the basis date of sale or age of account receivable. Accounts receivable aging is helpful for management in determining and managing which debtor or account receivable is likely to default and by taking into consideration the accounts receivable age a company can modify its provision for bad debts



Debtor Aging  (days)
Debtor# 1
Debtor# 2
Debtor# 3
Debtor# 4 
0-30
200



30-60
500
300


60-90


600

90-120




120-150
222


500
150-180

400


Total Amount  ($)
922
700
600
500