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Old outstanding credits on Accounts Receivable

Our company has about $24,000 worth of old credits that are sitting in the over 120 day column on our accounts receivable. We would like to clean up these old credits, but not sure where to start. They are actually from 3-4 years ago and are balances that were carried over from our old accounting system. The problem is that no one has access to the old accounting system and there is no way to research where those balances came from or if they are legitimate. What is the best course of action to clean up these old credits?

Answers

Steve Sheridan
Title: Associate
Company: Dean Lewis Associates
(Associate, Dean Lewis Associates) |

If they are 3 years old, you should check with your state to see the rules of unclaimed property. More than likely you will need to report the balances if those customers no longer do business with you.
In order to find out if they are legit, I would check the balance sheet with the aging report.

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