Otherwise known as accounts receivables.
It is the balance due from customers who have been supplied with goods or services on credit.
Only used by businesses who provide credit to customers.
Accounts receivables are listed as a current asset within the balance sheet.
Aged receivables refer to funds for goods on credit, that are now overdue for payment.
Accounts payable is the opposite being money due to be paid out for goods or service received on credit.
Statistics show that the longer a debt goes unpaid the chances of receiving the funds reduce.
A sustainable business ensures that enough money is coming in to cover the money going out.