The process of classifying accounts of individual customers by age group, where age is the number of days elapsed from due date is specifically called:
A) balance sheet approach.
B) income statement approach.
C) direct writeoff method.
D) aging of Accounts Receivable approach.

Question

Quizplus · Accepted Answer

The aging of Accounts Receivable approach involves categorizing accounts based on the age of the receivable, which helps in estimating the amount of receivables that may not be collectible.

The Process of Classifying Accounts of Individual Customers by Age