Net realizable value for accounts receivable refers to the total accounts receivable minus the allowance for uncollectible accounts or the bad debt.It is also called the book value of accounts receivable.
Aging of accounts receivable refers to the periodic report that categorizes an entities account"s receivable according to the length of time an invoice have been outstanding
Aging of accounts receivable as a management tool it may indicate that some customers are not good credit risks and it therefore help the management to make decisions whether or not to keep doing business with customers who are late payers.and as a result estimate the collected and uncollected debts.
Dec 4th, 2014
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