Page "Accounts receivable" Paragraph 18
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On a company's balance sheet, accounts receivable is the money owed to that company by entities outside of the company.
The receivables owed by the company's customers are called trade receivables.
Account receivables are classified as current assets assuming that they are due within one year.
To record a journal entry for a sale on account, one must debit a receivable and credit a revenue account.
When the customer pays off their accounts, one debits cash and credits the receivable in the journal entry.
The ending balance on the trial balance sheet for accounts receivable is usually a debit.
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