All 25 Sales & Purchase Ledgers questions
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How is a customer's account in the sales ledger written up? How is a supplier's account in the purchases ledger written up? What is a contra between the sales and purchases ledgers (set-off)? How do you deal with a credit balance in the sales ledger? How is a refund to a customer or from a supplier recorded? How is an early-settlement discount received from a supplier recorded? How do you record goods taken by the owner from inventory (drawings in kind)? What is the difference between the memorandum ledger balance and the control account balance? How do you record interest charged to a slow-paying customer? How do you account for an irrecoverable (bad) debt in the sales ledger?
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What is an aged receivables (debtors) analysis and why is it used?

Intermediate

Answer

An aged receivables analysis groups customer balances by how long they've been outstanding (current, 30, 60, 90+ days). Produced from the sales ledger, it highlights overdue accounts for collection, informs credit decisions and bad-debt provisions, and helps manage cash flow.
Aged debtors:
  Current 4,000 | 31-60: 1,500 | 61-90: 600 | 90+: 400
Real-world example The bookkeeper reviews the aged debtors report to chase the oldest balances first.

Common follow-ups: How does aging aid collections? | What informs a bad-debt provision?

Control Accounts Cash Book & Petty Cash Sales & Purchase Ledgers
All 25 Sales & Purchase Ledgers questions