Account receivable - sustany/dvg GitHub Wiki

Accounts receivable (abbreviated�A/R) is money owed to a business by another business or individual in exchange for property or services that were provided on�credit.�The settlement of an account receivable begins by sending an�invoice�to the customer. �A company enters accounts receivable under�current assets�on its balance sheet.�For example, a restaurant supply shop sells $10,000 worth of equipment to a restaurant on credit. As soon as the equipment is delivered to the restaurant the business�records�an account receivable on its�books. Once the restaurant makes the full payment (in whatever time frame set out under the�terms�of the�agreement) the accounts receivable is essentially replaced with cash. The case of�United States v. Berg�is an example of accounts receivable�used in a legal setting.��