Accounts receivable

The Hindu Business Line  3 hrs ago  Comment 
The structure will help improve flow of funds to micro, small and medium units
The Hindu Business Line  Nov 24  Comment 
Three entities including Axis Bank, Gurgaon-based Mynd Solutions and a joint bid by NSE Strategic Investment Corporation Limited and Small Industries Development Bank of India have been granted...
The Economic Times  Nov 24  Comment 
RBI on Tuesday granted an “in-principle” approval to three companies to set up and operate a new Trade Receivables Discounting System.
Motley Fool  Nov 8  Comment 
Here's how to calculate interest receivable and interest revenue when dealing with notes receivable.
The Times of India  Oct 25  Comment 
Eros International Plc is facing a massive selloff on the New York Stock Exchange (NYSE) after analysts raised red flags on the company’s receivables and user count of its streaming service ErosNow.
Banking Business Review  Oct 19  Comment 
Bank of America Merrill Lynch (BofA Merrill) has announced that its US Wholesale Lockbox service, which collects and processes these payments, has been fundamentally transformed, enabling greater accuracy and speed. This can mean improved...
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...


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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