If the borrower just used the reverse mortgage proceeds to pay off the original mortgage, after ten years the reverse mortgage balance, including fees and interests, would be around $135,000. If on the other hand, you want to establish a line of credit or receive monthly income from the reverse mortgage, then you will want to have as much equity available as possible. For example, take the 65-year-old with the $300,000 home.
The average accounts receivable collection period can be calculated from the following equation: Period=DaysReceivablesTurnover{\displaystyle Period={\frac {Days}{ReceivablesTurnover}}}. In the equation, days refers to the number of days in the period being measures (usually a year or half of a year).
Set up values for REC01, REC02, and REC03 in UDC table 09/21. Use the Review and Revise Accounts program (P0901) to assign the category code values to accounts in your chart of accounts. For category code 21, assign the value REC01 for notes receivable accounts, REC02 for interest receivable accounts, and so on.