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Explain the overview of accounts receivable.

Explain the overview of accounts receivable.

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An Accounts receivable is represent the money owed to a business by its clustomers and it is shown on balance sheet as an asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered.

Accounts receivable is an asset resulting from the accrual accounting. In this case, the business has delivered products or rendered services (hence, revenue has been recognized), but no cash has been received, as the business is allowing the customer to pay at a later point in time which is know as the credit period.

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