 the aged receivable summary. Let's look at the aged receivable summary. This is a quite common report that gives us a little bit more data that that isn't really in this customer center quite as quite as readily. And that's this common breakout up top where you've got the receivables now by customer. You still got the totals on the right. But now you've got it broken out by how outstanding some of the items are either their current or their one to 30 days out past due 31 to 60 61 to 90 or over 90 days past due. This gives us a nice quick visual about particular customers and whether or not of course they're paying on time and the more past due items are the more unlikely it is that we're going to get paid. So this is often also a common form that will be used to try to figure out what the actual value of the accounts receivable is possibly using like an allowance method. So let's take a look at that just to give an idea of that. If I go back to the receivables here this this amount right here represents who owes us money. It's on the books as an asset. We hope that it's going to be converted into cash at some point when we collect on it. But especially as you get to be a larger business it's quite likely that you're going to be making sales and not being able to collect on some of them because the person's going to disappear or whatever. It depends on the business in terms of how much of the receivables you're going to collect. So you don't know which ones you're not going to collect but you might have a pretty decent idea that this number is obviously overstated and that you're going to collect something below that. And then the question is is there a reliable estimate that you could make that would tell you you know give you a reliable amount and say hey look that's my receivables but I'm estimating that so much of those aren't going to be collectible we would call that an allowance method and possibly put an account in here under the accounts receivable called you know an allowance which would be a contra receivable decrease in the receivable amount. And so that's a in one method you might do that there's a couple methods you can look at the at the revenue for the current period and determine how much of that revenue is likely not to be collectible based on past data or you can look at a report like this and say well look the more outstanding some of these items are I'm going to give a value and say it's less likely that I'm going to collect on that to try to determine how much of this five thousand two eighty one fifty two is actually something I'm going to collect on versus something that I'm going to have to eventually write off as a bad debt in the future. And that's another thing that clearly often comes up with the receivables is if you've got a lot of stuff out here that's in the ninety one plus days you're clearly overstating your receivables so whether you use an allowance method or a direct write off method at some point you're going to have to say okay I'm not going to be able to collect on that and I'm just going to I'm going to write it off right I'm going to write it off to bad debt meaning I'm going to lower the accounts receivable instead of increasing cash I'm going to have to expense it to bad debt or reverse the sale or something like that and this report is often used for that kind of process. Now you could change some of this up top so you could say this is kind of like the standard thirty one to sixty and so on but you could change the days and you could change the number of periods you know if I change this to six then it could give us the more detail so now you could say okay I'm going to give them this much until I write it off to bad debt if they go past that point to over five hundred and fifty one then maybe I maybe I'm going to give up on it at that point and either give it to collections you might be able to sell your receivables to collections and let them go after it pass that point because they've or you could or you could write it off at that point might be a decision process so those are the general formatings