The aged receivables schedule
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The aged receivables schedule
The aged receivable schedule is a table which shows the total amount still owing from each customer. The debt can be broken down into a row for each customer. This can also be broken down into several columns which show the age of the debt. And a general rule is that the older the debt the greater the likelihood that it will become a bad debt or an irrecoverable debt. The table is very helpful in being able to answer many questions. First of all, what is the total trade receivables value? Another common question that could be asked is how much of the debt is over one month? And another question that can be answered by using this table is what is the provision for bad debts or irrecoverable debts if 5% is applied across all the debts?
