What is Accounts Receivable What is the difference between accounts receivable and accounts payable Types of accounts receivable How are accounts receivable recorded in financial statements? How to Manage Accounts Receivable How to Reduce, Insure, or Sell Debt What is the time limit for demanding debt repayment through the court? How to write off accounts receivable The Main Thing About Accounts Receivable in 5 Points What is Accounts Receivable Accounts receivable are funds that companies owe to counterparties, such as customers, business partners, banks, or government agencies.
, goods, and services. The business that expects to repay the debt is called the creditor, and the debtor is called the debtor. Accounts receivable arise when counterparties fulfill their obligations netherlands telegram mobile phone number list under the contract at different times. For example, a supplier delivered flour and sugar to a confectionery factory on Monday and received payment for the goods only on Friday.
During these five days, the confectionery factory was a debtor, and the supplier was a creditor. Businesses almost always have accounts receivable. Because transactions have different payment terms and often clients do not transfer money on the same day the company renders a service or ships goods. The creditor company may also provide the other party with a payment deferment or a loan for a certain period.