Aging of Receivables Schedule The accounts receivable clerk for Kirchhoff Industries prepared the following partially completed aging of receivables schedule as of the end of business on August 31: Not Days Past Due Past Over Customer Balance Due 1-30 31-60 61-90 90 Academy Industries Inc. 3,000 3,000 Ascent Company 4,500 4,500 Zoot Company 5,000 5,000 Subtotals 1,050,000 600,000 220,000 115,000 85,000 30,000 The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals: Customer Balance Due Date Conover Industries $30,000 March 22 Keystone Company 18,000 July 1 Moxie Creek Inc. 9,000 July 25 Rainbow Company 26,400 September 10 Swanson Company 46,600 August 3
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Aging of Receivables Schedule
The
| Not | Days Past Due | |||||||||||
| Past | Over | |||||||||||
| Customer | Balance | Due | 1-30 | 31-60 | 61-90 | 90 | ||||||
| Academy Industries Inc. | 3,000 | 3,000 | ||||||||||
| Ascent Company | 4,500 | 4,500 | ||||||||||
| Zoot Company | 5,000 | 5,000 | ||||||||||
| Subtotals | 1,050,000 | 600,000 | 220,000 | 115,000 | 85,000 | 30,000 |
The following accounts were unintentionally omitted from the aging schedule and not included in the preceding subtotals:
| Customer | Balance | Due Date | |
| Conover Industries | $30,000 | March 22 | |
| Keystone Company | 18,000 | July 1 | |
| Moxie Creek Inc. | 9,000 | July 25 | |
| Rainbow Company | 26,400 | September 10 | |
| Swanson Company | 46,600 | August 3 |
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