Meaning Of Accounts Receivables Management Assignment Help

Posted on March 28, 2017

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Meaning on Accounts Receivables:

 

Accounts Receivables of a company refers to the money due from the customers to whom a sale of a good has been made or a service has been provided, but the firm has not yet received any payment. Accounts receivables are usually due within a short-period of time which can be from a few days to a year. The sale of a good or service is treated as an accounts receivable after the customer has received sale invoice. On a company treats accounts receivables as an asset and shows in the balance sheet as a current asset. The companies allow a part of their sales to be on credit. These kinds of sales are particularly made to regular customers, who receive invoices periodically. The company should ensure that the time period given to the customers does not result in bad debts.
 

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