Asked by Keely Mizenburg on Jun 13, 2024
Verified
Accounts receivable represents credit sales that have not yet been paid by customers.
Accounts Receivable
Amounts yet to be paid by customers for goods or services supplied by a business.
Credit Sales
Sales made by a business for which payment is received at a later date, as opposed to immediate cash sales.
- Comprehend the principle and importance of the bad debt reserve and its influence on accounts receivable.
Verified Answer
JR
JivithaRao RamaRaoJun 19, 2024
Final Answer :
True
Explanation :
Accounts receivable is the amount of money that a company expects to receive from its customers who have purchased goods or services on credit but have not yet paid for them. Therefore, the statement is true.
Learning Objectives
- Comprehend the principle and importance of the bad debt reserve and its influence on accounts receivable.