accounts receivable


Money which is owed to a company by a customer for products and services provided on credit. This is often treated as a current asset on a balance sheet. A specific sale is generally only treated as an account receivable after the customer is sent an invoice.

See also: List of Key Accounting Terms and Definitions at

Use accounts receivable in a sentence

You need to make sure that you have good records of all of your accounts receivable so that you can know where your funds stand.

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We have recently entered into a factoring agreement to fund the increase in our accounts receivable as a result of an increase in sales.

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days receivable old-line factoring