Accounts receivable: S is an amount that a company

Accounts Receivables is an amount that a company is entitled to receive from its customers for goods or services sold on credit. Check importance of accounts receivables with example & process. Accounts Receivable (AR) represents the credit sales of a business, which have not yet been collected from its customers. Companies allow their clients to pay for goods and services over a reasonable extended period of time, provided that the terms have been agreed upon. Accounts receivable (AR) is an item in the general ledger (GL) that shows money owed to a business by customers who have purchased goods or services on credit. AR is the opposite of accounts payable, which are the bills a company needs to pay for the goods and services it buys from vendors. Accounts Receivable is an asset on a company’s balance sheet, and it represents money customers owe you. See a full breakdown of accounts receivable, featuring debits and credits, definitions, real world examples, and comparisons to accounts payable.