The average collection period only shows how long it takes to collect your credit sales on average. The aging schedule shows your total accounts receivable, and the exact amounts that are owed in each time frame categories.

In Accrual accounting system, goods are sold to customers on credit with different terms for repayment of money.

So to tracking the repayment of money from customers "Accounts Receivable Aging Schedule' is prepared to check how much money due within next 30, 60, 90, 180 or 360 days.

• An accounts receivable aging report summarizes your receivables on their age - how long they have been outstanding. So all the unpaid invoices posted in the past month are current, all the unpaid...
• The accounts receivable aging schedule is a listing of the customers making up your total accounts receivable balance.

Bad debt expense is measured indirectly, and the allowance for uncollectible accounts balance is measured directly.

An accounts receivable aging report summarizes your receivables on their age - how long they have been outstanding. So all the unpaid invoices posted in the past month are current, all the unpaid invoices from the prior month are over 30 days, the unpaid invoices from two months ago are over 60 days, etc.

When you are talking about the aging schedule a useful tool for analyzing the makeup of your A/R balance, analyzing the schedule allows you to spot any problems in your A/R early enough to protect your business from major cash flow problems