Accounts receivable

Benzinga  Sep 1  Comment 
- reuters © 2015 Benzinga does not provide investment advice. All rights reserved.  Aug 5  Comment 
WASHINGTON (dpa-AFX) - Marketing and customer loyalty solutions provider Alliance Data Systems Corp. (ADS) reported that average receivables for the month of July for card services increased 34 percent to $11.20 billion from last year's $8.39...
Banking Business Review  Jul 20  Comment 
VersaPay, a provider of cloud-based invoicing, accounts receivable management and payment solutions, has announced a change to the company’s US strategy and staffing.
The Economic Times  Jul 16  Comment 
RBI allowed banks to factor export receivables on a non-recourse basis, so as to enable exporters to improve their cash flow and meet their working capital requirements.
The Hindu Business Line  Jun 16  Comment 
PMA Insurance Group has selected OneShield Billing to enhance its current payment system. OneShield Billing is a billing and receivables system for P&C insurers across all commercial,...
The Hindu Business Line  May 31  Comment 
I am 42 and run my own steel business. My wife, 38, is a home maker. We have two daughters (12 and 10). Of late, the receivable from my debtors has increased. I hav...
Mondo Visione  May 19  Comment 
Fundtech, now a part of D+H, is a market leader in global transaction banking solutions and today released a white paper on the reemerging relevance of embedded derivatives, and how this corporate accounting burden can be transformed into a...
Forbes  Apr 22  Comment 
Credit is the lifeblood of the global economy and there are signs that it’s starting to dry up. Recent data from the National Association of Credit Management shows a significant reduction of credit extended in March, and a sharp increase in...
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...


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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