Accounts receivable (A/R) is one of a series of accounting transactions dealing with the billing of a customerThe person or group who commissioned the work and will benef... More for goods and services he/she has ordered. In most business entities this is typically done by generating an invoice and mailing or electronically delivering it to the customerThe person or group who commissioned the work and will benef... More, who in turn must pay it within an established timeframe called “creditor paymentCompensation of an obligation, or reimbursement, by giving o... More terms.” On a company’s balance sheet, accounts receivable is the money owed to that company by entities outside of the company. The receivables owed by the company’s customers are called trade receivables. Account receivables are classified as current assets assuming that they are due within one year. To record a journal entry for a sale on account, one must debit a receivable and credit a revenueAmount generated from sale of goods or services, or any othe... More account. When the customerThe person or group who commissioned the work and will benef... More pays off their accounts, one debits cash and credits the receivable in the journal entry. The ending balance on the trial balance sheet for accounts receivable is always debit.