Accounts Receivable (Customer Debts)
What is Accounts Receivable?
Accounts Receivable (AR) represents all funds owed to your business by customers for goods delivered or services rendered on credit terms. It is recorded as a current asset on the Balance Sheet.
Why Receivables are Classified as Assets
Receivables represent legally binding financial claims held by your business against customers, categorized under Current Assets on your Balance Sheet.
Frequently Asked Questions
Yes. Under accrual accounting, credit sales are recorded as earned revenue upon delivery, even though physical cash is collected later.
If a debt becomes uncollectible, it is recognized as a Bad Debt Expense, writing down the asset value.
By typing 'Sold to customer Ahmed 1000 on credit', Qayd automatically generates a customer ledger statement and updates total Accounts Receivable.
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