Account Receivable Valuation

Accounts receivable and customer accounts have different meanings. Here we are talking about accounts receivable which refers to the company’s goods or services that have been delivered to customers with evidence of billing or invoices, these are considered as a company’s asset which is yet to be received. Therefore, it must be assessed and compared with the debtor’s history and then assessed as the value of all debtors. The appraisal principle is to divide the debtors into 2 groups according to the overdue of the debtor, namely the group that is in the age of collection under the agreement and the group that is over the agreement period, in which the latter group will have a thorough assessment of the likelihood of debt collection or as doubtful accounts. Doubtful debt must still be assessed further. Finally, the current account receivable value of the organization will be obtained.