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Chapter 8 PDF

This document discusses account management and aging of accounts. It explains that once credit is issued, accounts are sent to collection management. The age of an account, which is the time since the due date, is the most important indicator of its condition. Accounts are either current or past due. Examples are given of accounts of different ages. An aging summary provides balances and numbers of accounts in different aging categories. The older an account is, the harder it is to collect and the lower the chance of recovery.

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Christine Joy Rodriguez
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118 views

Chapter 8 PDF

This document discusses account management and aging of accounts. It explains that once credit is issued, accounts are sent to collection management. The age of an account, which is the time since the due date, is the most important indicator of its condition. Accounts are either current or past due. Examples are given of accounts of different ages. An aging summary provides balances and numbers of accounts in different aging categories. The older an account is, the harder it is to collect and the lower the chance of recovery.

Uploaded by

Christine Joy Rodriguez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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CHAPTER 8

ACCOUNT
MANAGEMENT
AGING OF ACCOUNTS
Once cash loans have been released or merchandise have been supplied,
the accounts are endorsed to the collection management.

Credit department must also continuously be apprised of the result of the


collection efforts, particularly as it relates to credit policies and how they
were implemented.

The most important and only basis for judging the condition of an account
is its age.

Age - the age in relation to the due date.

Accounts are either current or past due.


EXAMPLES
Rezelia Engala, was given If today is March 31,
a 60-day term (to mature 2004, and the account
on March 29, 2004) and has not been paid, said
today is the end of account is past due
February, that account is (beyond due date). More
not yet due. specifically, it is past due
by 2 days and is
classified as past due 1-
30 days.

CURRENT PAST DUE


CURRENT ACCOUNTS PAST DUE ACCOUNTS
Alvarez David
Bongabong Mabagos
Flores Engalla
Quinto Ninonuevo
Suarez Perez
Zapata Bolivar
Galves
Martelino
ACCOUNT OF NINONUEVO
(Past Due Account)

Account is past due


because the due
date (March 11) is
before or prior to the
cut-off date (April
30).
AGING SUMMARY

Where a detailed aging of accounts is summarized in terms of balances


and number of accounts.

The higher the ratio of the accounts that are current, the better is the
overall health of th accounts.

The older the account gets, the more difficult it is to collect and said
another way, the lesser is the probability of recovering that account.
GROUP 6
Dela Cruz, Angelica

THANK
Rafer, Kween Krizel
Rodriguez, Christine Joy
Tabanao, Erika Bianca

YOU!
Ubana, Mary Joy
Villagomez, Raven

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