How do you define accounts receivable? - 1 minute read
How do you define accounts receivable?
Accounts Receivable is an Asset, which means that it is a thing of value that you own or have a legal right to.
When you sell a product on credit to a customer. You debit Accounts Receivable (it increased) and you credit Sales (it also increased)
When your customer pays you, you debit Cash (increased) and you credit Accounts Receivable (decrease)