An aging of accounts receivable may be used to estimate the amount of accounts receivable that a company is likely not to collect.

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An aging of accounts receivable allows a company to categorize outstanding payments by the length of time they have been outstanding. This can assist in identifying accounts that are overdue or at risk of becoming uncollectible. Therefore, an aging of accounts receivable can be used to estimate the amount of accounts receivable that a company is likely not to collect.

An Aging of Accounts Receivable May Be Used to Estimate