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What is dunning? What is bad debt? What is a promise to pay and how is it tracked? What is a collection call and how should it be conducted? What is the difference between the direct write-off method and the allowance method? What is the allowance for doubtful accounts and how is it recorded? How do you record the recovery of a previously written-off account? What is the percentage-of-sales method for estimating bad debt? What is credit insurance and how does it protect receivables? How do you prioritize collections to maximize cash recovery?
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Accounts Payable & Receivable › Collections & Bad Debts

What is a statement of account and how does it aid collections?

Beginner

Answer

A statement of account lists all of a customer's open invoices, credits, and the total owed as of a date. Sending it reminds customers of outstanding balances, surfaces disputes or missing invoices early, and gives collectors and customers a shared reference, prompting payment and reconciliation.
Real-world example A month-end statement prompts a customer to pay two overlooked invoices and query a third, speeding resolution.

Common follow-ups: How does a statement differ from an invoice? | Why send statements regularly?

Aging Analysis Reconciliations Collections & Bad Debts
All 23 Collections & Bad Debts questions