• Receivables maturity is the process of distinguishing open receivables based on the length of time an invoice remains unpaid.

  • Aging of receivables is useful in determining the allowance for doubtful debts.
  • The Accounts Payable Report tabulates invoices due by duration, often in 30-day segments, for quick reference.
  • Accounts receivable aging is used to estimate the value of receivables that a company does not expect to collect.
  • This information is used to adjust the company’s financial statements to avoid overstating its earnings.