 whenever we make sales on receivables, we're running a risk that they don't actually pay the money because we already did the work. So if you're working with like, you know, dishonest people or something like that, uh, then it's likely that, that you, that you're going to have some portion of your receivables that you're never going to basically collect on. So then, so then, so this can help you to estimate what that is the portion you're not going to collect on. And at some point, if you have a lot in like over 90 days that are uncollected, you have to, you have to cut your losses and let it go and possibly write it off if you're using a direct method, uh, or, or an indirect, but it's a different write-off method. If you're using, uh, an, an allowance method of recording accounts receivable, the concept there, which usually happens for larger businesses, because it's a little bit more difficult to deal with, but the concept is if I recorded revenue based on a sale and I know that some of those revenue items are not going to be collected because just of past history, I, if I know like 10% of my revenue isn't going to be collected, the revenue on account, the revenue that I sold with accounts receivable, I'm not going to collect on it. Well, then the sale didn't really happen kind of, right? So I, so what I should be doing is recording the expense, bad debt expense in the same point in time that I made the revenue sale, if I could, but I can't really do that because I don't know how much revenue or how many, I don't know who's not going to pay. I just have a pretty good idea based on past history that some people will not pay like 10%, let's say, or whatever, based on our calculations based on the calculations from this report. Uh, and so what we're going to do then is say that is, is write, write it off already and then create an allowance account, uh, under the accounts receivable for the amount of accounts receivable we don't expect to collect on, and that makes the balance sheet look more clean or be more fair or proper because instead of having $5,281.52 as an asset, it should really be that amount minus the amount that we pretty sure we're not going to collect on even though we don't know who the deadbeats are yet, right? That aren't going to pay. So, so, and then when we, then when we write it off, we write it off to the, so that's the allowance method. You might use this report for that as well. We have a course on accounts receivable and allowance method. If that's an interesting topic you want to dig into in more detail. Uh, a lot of small businesses might not do it that way because of course it's a tedious to do, but you can see why for external reporting purposes, it would be, uh, a useful tool and it's generally accepted accounting principles typically. Okay. So then if we go into, oh, by the way, if I go back on over here, you have some formatting options. So you've got your active cells. Uh, you've got the aging report dates. You can change the days per aging period if you wanted to, but this is pretty standard. So like this is usually standardized to some degree, but if you're using this for the calculation of allowance for doubtful account or something like that, you might want different periods, uh, that might help you for your calculations and you can change those up top. All right, let's go back on over. We have the last one we'll look at the accounts receivable aging detail, right clicking, opening that one up and we'll check it out. So I'm going to change the date up top. This is going to be, uh, 123123, run it to refresh it. So there we have it. So now instead of having the columns up top, the times pass due because we want to see the invoices detail, we have the drop down here. So now we've got the drop down here for the 30 to 60 days. And then it gives us the specific invoices and you can see the different customers within it. And then we've got, uh, the one to 30 again, here's your categories. Uh, uh, I'm sorry, the 31 to 60, this is 31 to 60. This is the one to 30. And then the current is on the bottom of this one. So more detailed reports. So you might use these in conjunction with each other. You might look at this report and then think about, okay, let me look at these specific invoices that are in this category or like these overdue categories, where's that $85 that specific invoice. If there were multiple items in there, it might be a little difficult to drill down on there to go over here and find it here. You can drill down on it here. You could also drill down on it here. Right. And that's going to give you your, your detail, uh, as well, which you can further drill down on within here. Right. So that's the general, and that takes you to the invoice. So that's the general, uh, idea of the, uh, aging reports accounts receivable for a larger business is going to be has, could have it a whole department trying to collect on those, trying to collect on those accounts receivable, get the allowance accounts reported, uh, properly and making sure everything's nice and clean in, uh, that account, as well as the sub ledgers and all the customers are as happy as they can be, uh, while hopefully paying us what they owe us.