arChana dhore

• Jun 20th, 2007

 

As sales occurs every customer is not able to pay the bills, that's where A/R are occurs, the goal of A/R is to  maintain, summarize & record all the transactions related to unpaid a/c or future collections or A/R.

yournura

 Profile Answers by yournura 

• Nov 28th, 2007

 

Accounts Receivable is the part and parcel of working captail. The major working captial is locked in accounts receivable often than inventory. The goal of accounts receivable  is to be collecting cash from debtors as quick as possible and helping management cycle. Cash is converted as raw materials , wip and product, overhead, labour and debtors , finally its once again converted as cash.To monitoring the credit period, and inform the debtors for due dates.

seenu_palla

 Profile Answers by seenu_palla 

• Jan 11th, 2009

 

Speedy recovery of cash from the customer to manage the working capital.

Thomas Oduor

• Jul 30th, 2013

 

Accounts Receivable is that part of sales made on credit. Credit sales facilitate sales because as it gives buyers, especially new businesses or firms with temporary liquidity crunch, time to obtain goods and or services, sell or use them in production and then back.

Without Accounts Receivable, most of these traders and producers would be locked out of business and the world trade wouldn't be where it is today. Accounts Receivable is a kind of a loan in kind and should therefore attract a cost. Accounts Receivable has a risk.