What is an accounts receivable?
Accounts receivables are oral or written amounts due from a customer or client and are associated with sales made on credit. Accounts receivables will be recorded when the sale of a product or the provisions for services rendered to clients have been delivered or provided before they have been paid for.
Accounts receivables will be recorded as short-term assets (current) as they are typically claimed within 30-90 days. Therefore, unlike notes receivable, accounts receivable will not have interest associated with it.
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