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what is the general rule for how long the collection period should be for accounts receivables?

1 Answer

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  • Bill B
    Lv 4
    1 decade ago
    Favourite answer

    It depends on the industry and the general economic conditions.

    Usually, if an account is more than 30 days old, you would want to start taking a reserve against a portion of the balance.

    However, this site suggests 90 days is when you start to reserve.

    http://www.encyclopediaofcredit.com/WebHelp/depart...

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