Delinquent accounts receivable are those that are

Delinquent accounts receivable refer to amounts owed by customers that have not been paid within the agreed-upon timeline. The correct choice states that delinquent accounts are overdue based on the initial debt notice. This means that the payment due date has passed, and the debtor has failed to settle the account by that date.

Understanding the nature of delinquent accounts is crucial for effective debt management. When accounts become delinquent, organizations may take further action to collect the overdue balances, such as sending reminders or escalating the matter to collections.

The other choices relate to different scenarios concerning accounts receivable but do not accurately define what makes an account delinquent. Payments made before the due date indicate compliance with the payment terms, writing off accounts as uncollectible reflects a decision made after extensive collection efforts, and selling to a collections agency is a strategy used to recoup debts that are already past due but does not itself define delinquency. Thus, the concept of an account being overdue captures the essence of what constitutes a delinquent account correctly.