What would be used to determine the collectability of accounts receivable balances?
What would be used to determine the collectability of accounts receivable balances?
An aged accounts receivable listing is used to determine the collectability of accounts receivable balances. This listing categorizes receivables based on the length of time they have been outstanding, which helps to identify overdue accounts and potential collection issues.
Shipping documents and confirmations (both positive and negative) only shows the existence. Only aging file could reflect collectability, how many days outstanding balances
Positive confirmation would address the existence assertion. It has nothing to do with the collectability/valuation of the AR.
Why not C? Please explain. Thanks