what is the typical method for aging accounts 
the aging method is used to estimate the number of accounts receivable that cannot be collected this is usually based on the aged receivables report which divides past due accounts into 30 day buckets each bucket is assigned a percentage based on the likelihood of payment by multiplying the total receivables in each bucket by the assigned percentage the company can estimate the expected amount of uncollectable receivables 1the bottom lineaccounts receivable aging is a type of financial report used by businesses it distinguishes open accounts receivables or customers with outstanding balances based on how long an invoice has been unpaid it usually tabulates invoices owed in 30 day segments this report can be used in a variety of ways businesses can use accounts receivable aging to decide whether to continue doing business with a certain customer or whether to require them to pay in advance or in cash it can be used to decide whether to pursue an invoice in court or through a collections agency if the company cannot collect the amount owed the accounts receivable aging report is used to write off the debt 