The aging of accounts receivable method is based upon the principle that the longer an account is overdue,the higher the risk of nonpayment.

Name: The aging of accounts receivable method is based upon the principle that the longer an account is overdue,the higher the risk of nonpayment.
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The aging method gets its name because it is based on the "age" of each amount in Accounts Receivable.The older and more overdue an account receivable becomes,the less likely it is to be collectible.

The Aging of Accounts Receivable Method Is Based Upon the Principle