When a percentage or dollar amount that is added to an overdue Accounts Receivable is considered a...?

When a percentage or dollar amount is added to an overdue Accounts Receivable, it is considered a late fee or interest charge. This charge serves as a penalty for late payment and is meant to incentivize timely payments from customers. It can also reflect the cost of carrying the receivable beyond its due date. Such fees must comply with legal regulations and the terms agreed upon in the original credit agreement.