Aging of Accounts Receivable or Aging Schedule

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Barron's Business Dictionary:

Aging of Accounts Receivable or Aging Schedule

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Classification of trade accounts receivable by date of sale. Usually prepared by a company’s auditor, the aging, as the schedule is called, is a vital tool in analyzing the quality of a company’s receivables investment. The aging schedule reveals patterns of delinquency and shows where collection efforts should be concentrated.

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