The longer an account receivable has been outstanding,the less likely it is to be collected.

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History suggests that an account receivable that is past its due date is less likely to be collected than one that is not yet currently due.The longer an account receivable remains past due,the less likely it is to be collected.Accordingly,the accuracy of the amount of estimated uncollectible account expense can be improved by aging of accounts receivable,which involves applying higher uncollectible percentage estimates to older receivables.

The Longer an Account Receivable Has Been Outstanding,the Less Likely