Accounts Receivable | Patriot Software

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Accounts Receivable Definition

Term Definition
This is money due from a customer to the business that generated the service or product. The total balance due for accounts receivable is reported on a financial statement called a Balance Sheet.

Extended Definition 
When a business provides a service or sells a product, payment is expected from the customer. Using the accrual method of accounting, if payment is not received at the time of the transaction, the balance due is considered accounts receivable to the business.  The total amount of receivables are reported on a financial statement called a Balance Sheet.

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