Accounts Receivable

Mondo Visione  Feb 6  Comment 
Alberta Securities Commission (ASC) staff  have issued a Notice of Hearing alleging that Poseidon Concepts Corp., Lyle Dennis Michaluk, Matthew Cory MacKenzie, Clifford Leroy Wiebe and Joseph Anton Kostelecky breached Alberta securities laws...
The Economic Times  Dec 31  Comment 
Electricity boards & companies that have been restructured still owe a lot of money to these companies and suppliers. It need to be solved.
The Hindu Business Line  Dec 15  Comment 
Omega Healthcare specialises in medical billing, accounts receivable management and other back-office services
The Hindu Business Line  Dec 14  Comment 
Trade Receivables Discounting System will facilitate financing of bills of MSMEs drawn on corporate and other buyers
The Economic Times  Dec 10  Comment 
Factoring is a financing arrangement for suppliers by making pre¬payments against invoices. This provides liquidity to MSMEs and facilitates collection of receivables.
The Hindu Business Line  Dec 4  Comment 
To make it easier and faster for micro, small and medium enterprises (MSMEs) to get their dues, the RBI put out final guidelines for setting up of a Trade Receivables Discounting System (TReDS...
The Economic Times  Dec 3  Comment 
To help MSMEs, RBI today permitted setting up of an exchange-based trading platform to facilitate financing of bills raised by such small entities to corporate and other buyers, including government departments and PSUs.
Benzinga  Nov 20  Comment 
Diamond Resorts International, Inc. (NYSE: DRII) announced today that it has completed a securitization involving the issuance of $260 million of investment-grade rated securities. The issuance was completed through Diamond Resorts Owner Trust...
SeekingAlpha  Oct 17  Comment 
By George Hanley: Shareholders in durable goods retailer Conn's (NASDAQ: CONN) have likely not been too happy with the company's stock price trajectory in 2014, down more than 50%. The company has been hurt by rising past due customer receivables...


Accounts receivable are money owed to a business by its customers from goods or services sold that have not yet been paid for.

Accounts receivable (alternately "receivables") are created when a customer purchases goods or services from a company but does not pay for them at the time of purchase. Instead, the company issues an invoice for the goods or services at a later date, often at the end of the month. The amount due on the invoice is considered accounts receivable for the company. Receivables are treated as current assets on a company's balance sheet. Receivables are entered into a company's books when they receive an invoice for a good or service provision (and not before), as the invoice proves that money is legally owed to the company by an outside entity.

Receivables are typically issued by companies to reliable customers, since they are selling their goods on credit.


A car dealer buys five cars from Ford Motors but does not pay for the cars at the time of purchase. When Ford issues an invoice to the buyer, Ford also creates an accounts receivable entry on its balance sheet. The accounts receivable are settled once the dealer pays Ford in full for the cars.

For the car dealer, the invoice represents accounts payable, or money they have to pay to another company for already purchased goods or services. When the dealer pays Ford Motors, Ford then converts its accounts receivable to cash on its balance sheet.

Entry at the Time of Issue Invoice:

Car Dealer A/c Dr.

  To Sales A/c Cr.
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