aging schedule

Definition

A report categorizing accounts receivable by how long they've been outstanding, typically in 30-day buckets. It's a snapshot of who owes you money and which customers are slow payers or potential deadbeats.

Example Usage

The aging schedule revealed that 40% of receivables were over 90 days past due, indicating serious collection problems.

Origin

Basic accounts receivable management practice dating to early 20th century credit management

Fun Fact

The older a receivable gets, the less likely it is to be collected—debts over 90 days past due have roughly a 50% collection rate.

Source: Accounts receivable management terminology

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