accounts receivable collection period

'accounts receivable collection period' can also refer to...


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The time given to customers in which to pay their accounts. It is common to require customers to pay within 30 days, although in practice the collection period is often not respected. As late-paying customers can often cause major cash-flow problems, a chronological analysis of outstanding debtor amounts should be produced monthly to ensure that all outstanding amounts are followed up by reminders.

Subjects: Accounting.

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