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Accounts receivable are the amounts of debts, for goods (services) provided on credit, which companies should receive from buyers. It arises if services (goods) were sold, but remained not paid. Most often the buyer does not provide any documents confirming his debt.
There are two types of receivables – normal or legal and expired. Normal arises when money for goods (services) is not immediately entered by the company, but after some time. That is, these are the debts whose repayment terms have not yet come. Expensible, in turn, arises when the buyer or customer violates financial disciplines, without paying the goods (services) provided to him (services).
Accounts receivable is the property of the organization and refers to the company’s working assets regardless of the terms of payment.
Now not a single subject of economic activity is complete without receivables, since it allows the debtor organization to use additional, free working capital, and the creditor organizations expand their sales market for goods.