What is Accounts Receivable?
Accounts Receivable Definition Here we will study “What is Accounts Receivable?” or Define Accounts Receivable In Accounting. Accounts Receivable / Su ndry is the amount which is due from customers against the goods sold or services rendered by company to customers on account. They are also called i n short words as "Receivables". Basically, t he term "Receivables" refers to the amount due from individuals customers or companies for the goods sold on Credit Basis. For Example, if the Company ABC sold goods worth Rs. 50000 to customer Mr. A ( Accounts Receivable) On Credit Basis, then Mr. A is the Accounts Receivable or Debtor is for the company from whom the payment (Rs. 50000) will be received within the Specified Accounting Period or Accounting Cycle. As, Accounts Receivable is the Current Asset , so we debit it as it increases and credit it when it decreases. From the above example, we know there are two...