Account Receivable

Definition: Notes receivables describe promissory notes that represent loans paid from a company or business to another party. The note comes with a promise from the borrower that it will repay the lender in the future. Similarly, a note receivable gives the holder, or the lender, the right to receive the amount from the borrower.

Revenues define the income from a company’s operations during an accounting period. These revenues may arise from the sale of either goods or services. Similarly, they may come from both cash and credit sales. Regardless of their source, revenues play a significant role in a company’s profits and success. Therefore, companies strive to increase the

What are Accounts Receivables? Accounts receivables are the amounts that are collectible from the customers due to the credit sales that the company sells the products or services from credit sales. This outstanding amount ranges from a few days to a fiscal year and sometimes more than one year. Companies allow their customers to pay

Overview Accounts receivable represents the outstanding amount owed to a business from selling products or services on credit. Accounts receivables are itemized in the balance sheet as current assets. Analyzing the quality of accounts receivables for an entity is essential in assessing its financial stability. Companies accept accounts receivables as it may persuade more sales

Introduction Accountants use accounts receivables aging as a management technique to evaluate a company’s accounts receivables and find out existing irregularities. The accounts receivables aging report is an essential comparison and strategic financial mechanism that shows outstanding amounts of receivables for a period of time. The accounts receivables aging method categorizes the receivables based on

Definition: Notes receivables are written promissory notes which give the holder or bearer the right to receive the amount mentioned in the agreement. It is treated as an asset by the holder of the note receivable. Sometimes accounts receivables are converted into notes receivables to allow the debtors to pay the balance. If the note

What is it? When a company makes sales, it doesn’t collect cash from all the customers. Some customers pay at the time of purchase itself and some pay on credit terms. When customers fail to pay on the due date and the company assumes that the money can’t be collected, then it is treated as

Bad debts are unavoidable for companies. Any company that offers credit sales will also have bad debts associated with them. It is because when a company offers credit sales, it accumulates accounts receivables. Accounts receivables are a group of balances that represents payments owed by third parties, usually customers, to the company. Every company has

What is bad debt? When a company sells products to its customers, it can either collect the payment or allow the customer to pay at a later date. In the case of credit sales, the company must record the sale and the associated receivable balance.      When the customer repays the amount later, the company